In SaaS entrepreneurship, conventional wisdom often falls short of reality. Few stories illustrate this better than Joe Kowalski's journey from biomedical polymer chemist to successful SaaS founder and investor. In this episode of SaaS That App: Building B2B Web Applications, Aaron Marchbanks and Justin Edwards discuss with Joe what it really takes to succeed in the SaaS world.

This podcast is brought to you by Delta Systems, your one-stop shop for front-end, back-end, and full-stack software development. At Delta, Justin and Aaron share the same philosophy when it comes to clients: we treat people like colleagues, not just customers. Maybe that’s why we typically spend years working with the same companies: how many software engineering firms can you say that about? So, if you’ve got a big SaaS project in mind but have no idea where to start, come and get a free scope and estimate from us on our website.

What You’ll Learn:

How to identify and validate profitable vertical markets for B2B SaaS products
The framework for building micro-SaaS companies capable of reaching $3-5M ARR and $15-20M exits
Why founder character and commitment matter more than initial product ideas
The bootstrap vs. VC decision framework
How to balance product development with sustainable growth

Joe Kowalski is the managing partner of SaaS Labs, where he leverages over two decades of experience in SaaS entrepreneurship to guide and invest in emerging tech startups. Following a successful exit from ServiceMonster, Joe now focuses on helping founders navigate the challenges of building sustainable tech businesses. As an investor and mentor, Joe specializes in identifying promising micro-SaaS opportunities and helping technical founders develop the comprehensive skill set needed to build successful companies in today's rapidly evolving tech landscape.

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Highlights and YouTube Chapters:

[00:00] Introduction
[01:30] From Grinding Aluminum to the Lab
[02:36] Cancer, Code, and the Birth of a SaaS Pioneer
[06:06] The Billion-Dollar Vertical Joe Missed
[09:02] Pricing Mistakes That Cost Millions
[12:56] The Opportunity and Trap of AI for Founders
[16:42] When Marketing Made the Money
[20:26] What Joe Looks for in Founders Now
[24:02] The Harsh Truth: No Balance at the Beginning
[29:47] Would Joe Do It All Again?
[35:11] What’s Next for Joe?

Episode Resources:

Joe Kowalski on LinkedIn
SaaS Labs Website
Aaron Marchbanks on LinkedIn
Justin Edwards on LinkedIn
Delta Systems Website

Got a burning idea for an episode, or a SaaS question you absolutely must know the answer to? Leave us a voice memo at SaasThatApp