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Micro-SaaS
Micro-SaaS means building and selling a small software product, often through subscriptions, for a specific customer need <a href="https://www.businesspathfinder.co.uk/ideas/saas-microapp" target="_blank" rel="noopener noreferrer">Business Pathfinder</a>. It can provide recurring revenue, but some attempts earn nothing and income is not guaranteed <a href="https://www.cashcow.ie/cashcow/ideas/saas-micro-startup" target="_blank" rel="noopener noreferrer">CashCow.ie</a>.
Open the interactive guide (checklist, video, read-aloud) →In plain words
- You build a small online tool for a specific problem.
- People may pay each month to use it.
- First, ask people what problem they need solved.
- Build a simple version and test it with them.
- It can take time to find customers, and earnings are not certain.
Who it suits
People who enjoy solving a specific problem, can learn or already have software skills, and are willing to keep improving a product and supporting customers. It may suit someone starting alongside other work rather than relying on quick income.
People may pay for a tool that saves them time, reduces a repeated frustration, or helps them do a task more easily. A subscription can bring in repeat income, but only if customers find lasting value and choose to keep paying.
Step by step
- Choose a small group of customers you can reach. Pick a specific kind of business or independent worker whose needs you can understand. Choose a group you can contact through a community, online forum, or existing work network. About 1-2 hours.
- Ask what problems people already have. Ask how they handle a frustrating task now, what they have tried, and what makes it difficult. Look for the same problem coming up more than once instead of assuming your first idea is the right one. About 1-3 days.
- Describe the problem and ask if it matters. Write a short description of the problem and the result your tool could offer. Show it to people in your target group and ask whether they would consider paying for that result; their answer is useful feedback, not a guarantee of sales. About 1-2 hours.
- Sketch the smallest useful version. Draw or list the steps a customer would take to get the main result. Leave out features that do not help solve that problem, so the first version is easier to build and test. About 2-4 hours.
- Choose a build method that suits your skills. Choose an approach you can learn and maintain. The Irish guide names Bubble for no-code building and Next.js for coding CashCow.ie. About 1-3 days.
- Build and test the main task. Make a working version that does one useful thing, then invite a few people from your target group to try it. Watch where they get stuck and write down the problem before adding features. About 1-4 weeks.
- Set a clear price and explain what it includes. Choose a price that reflects the value to customers and covers ongoing costs such as hosting, payment processing, and support. The Irish guide suggests €10–€50 per month as an example, not a proven price for your product CashCow.ie. About 1-2 hours.
- Set up payments and a way to get help. Choose a payment provider, check its current terms and charges, and provide a clear way for customers to contact you. Stripe is one named option; the UK guide gives a typical rate of 2.9% plus 20p per transaction, so check its current charges before choosing Business Pathfinder. About 1-3 days.
- Launch, listen, and fix the main problems. Tell the people you spoke to that the product is ready, invite feedback, and fix the most important problems before adding features. The Irish guide suggests Product Hunt as one possible launch route; it does not state fees CashCow.ie. About 1-2 weeks.
Your first 15 minutes
Speak to several people in one customer group, write down the problem they repeat most often, and ask whether they would try a simple tool to solve it.
The money
Estimate your hosting, payment, support, tax, and maintenance costs, then choose a price customers can understand and you can explain. Test your proposed price with the target customers; €10–€50 per month is only an example from the Irish guide, not a promise or standard price <a href="https://www.cashcow.ie/cashcow/ideas/saas-micro-startup" target="_blank" rel="noopener noreferrer">CashCow.ie</a>.
Example only: UK monthly sales: 5 customers × £10 = £50. Using the UK guide’s typical Stripe rate, fees are about £2.45 (2.9% of £50 plus 20p × 5); subtract £25 hosting, leaving £22.55 before tax and other costs <a href="https://www.businesspathfinder.co.uk/ideas/saas-microapp" target="_blank" rel="noopener noreferrer">Business Pathfinder</a>. Ireland illustration: 5 customers × €10 = €50; if you assume €10 in total monthly costs, €50 − €10 = €40 before tax and other costs. The Irish costs here are invented for illustration, not a quoted provider rate.
The rules
You can generally build and sell a small software product in the UK and Ireland. Check which tax, data and customer rules apply to you. There’s no general software licence for this. If your product serves a regulated activity, check with the relevant regulator.
UK and Northern Ireland
- Trading income and tax. The first £1,000 a year of trading income is covered by the trading allowance. This is your gross income before expenses. If your income is above that, tell HMRC GOV.UK Tax Help for Hustles. If you need to register for Self Assessment, do so by 5 October after the end of the tax year GOV.UK.
- VAT. You must register for VAT if your taxable turnover goes over £90,000 Business.gov.uk. If you’re unsure how the threshold applies to your sales, check with HMRC.
- Customer data. Plan how you’ll protect personal data and where you’ll store it. If your product transfers personal data outside the UK, follow data-protection legislation. Consider getting advice from a legal adviser or data protection officer GOV.UK. The ICO’s wholesale and retail guidance isn’t a general rule for every sole trader. Use its self-assessment tool to check whether you need to pay a data protection fee ICO. The page says that holding customer details only for your own accounts and transaction records is likely to be exempt. This doesn’t apply to information processed by or obtained from credit reference agencies. Don’t assume this example covers other ways your product processes personal data.
- Customer terms and insurance. Before you take payment, check which consumer rules apply to your online subscriptions and cancellation terms. Consider whether business insurance would be useful. There’s no stated legal requirement for it.
- Marketing and age. If you use paid or affiliate social-media posts, label them clearly, for example “Ad” ASA. Check the age terms set by your payment and hosting providers before you start. There’s no stated legal age rule for this business.
Ireland
- Income tax and returns. If you’re a PAYE worker, register for self-assessment using Form 11 if your taxable non-PAYE income is over €5,000 or your gross non-PAYE income is over €30,000. Below those limits, declare it on Form 12 through myAccount Revenue. Check your own position with Revenue or an accountant.
- VAT. The VAT registration threshold for services is €42,500 Revenue. Check with Revenue how your software sales are treated.
- Business name. If you trade under a name other than your own, register the business name with the CRO. Online registration costs €20 Companies Registration Office.
- Customer data and terms. If your product handles personal data, plan how you’ll protect it and where you’ll store it. Before you take payment, check which consumer rules apply to your subscriptions and cancellation terms.
- Marketing, insurance and age. If you publish commercial influencer content, label it clearly, such as “#Ad” CCPC. Consider whether business insurance would be useful. There’s no stated legal requirement for it. Check the age terms set by your payment and hosting providers. There’s no stated legal age rule for this business.
Checked against official sources: 22 October 2026. Not yet reviewed by a qualified tax or legal adviser. General guidance, not legal advice. Check the official link beside each point before you start.
Common mistakes
- Building lots of features before checking whether customers share the problem.
- Assuming interest in an idea means people will pay for it.
- Forgetting ongoing hosting, payment, support, and maintenance costs.
- Making the product hard to use with assistive technology or unclear instructions.
- Treating launch as the finish line instead of continuing to listen and improve.
AI-made demonstration: this module has a 20-second street-chat video in the interactive guide. The presenter and the people in it are computer-generated, not real people.