Scaling Success: Acquiring and Engineering Growth in Micro SaaS with Kjael Skaalerud

Growth Leap

04/19/24 • 54 min

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I had the pleasure of speaking with Kjael Skaalerud, seasoned sales executive, investor, and President of Skaling Ventures. He has found success in acquiring and growing micro SaaS companies.

Kjael's contrarian approach focuses on small, profitable, and enduring businesses rather than chasing larger, venture-backed companies that often prioritize growth over profitability.

Kjael shares his insights on why micro SaaS companies can be just as safe and stable as their larger counterparts, despite conventional wisdom suggesting otherwise. With lower valuations and less competition from institutional players, these businesses present a unique opportunity for investors like Kjael.
We dive into his first acquisition, a vertical niche SaaS for photographers and creative professionals that had been profitable for years and boasted impressive retention rates - a clear indication of the product's usefulness and the founder's deep understanding of their target market.
Key Takeaways:

Micro SaaS companies can be just as safe and stable as larger businesses, offering lower valuations and less competition from institutional players.
Founder-product fit is crucial, as founders solving their own problems often create useful products with great retention.
Founder burnout can be a buying signal, indicating a solid business with a founder ready to move on.
The first 90 days post-acquisition should focus on visibility, documentation, transition, and validating diligence assumptions before pursuing growth.
Building transparently and maintaining open communication with users post-acquisition helps preserve the human element and avoid the pitfall of going silent.
Simplicity equals mastery - if it takes a complex explanation to justify an acquisition, you probably don't fully understand the business.
Establishing reasonable incremental growth goals based on baseline performance (systems over goals) is more effective than setting arbitrary targets.
Fostering a culture of care and respect enables honest feedback and allows teams to move faster through a shared commitment to truth-seeking.

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04/19/24 • 54 min

Growth Leap - Scaling Success: Acquiring and Engineering Growth in Micro SaaS with Kjael Skaalerud

Transcript

POD032 - Kjael Skaalerud - Scaling Success: Acquiring and Engineering Growth in Micro SaaS with Kjael Skaalerud

[00:00:00] Kjael: Where do I see opportunity? And, try to be a contrarian and I know that sounds a little bit cliche, but, uh, these really small and I think conventional definition of a safe business is usually a function of size.

[00:00:12] So. Put simply a 10 million ARR businesses is safer or more enduring or more stable than a 1 million business. An

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