BiP

For the ones who like to Build in Public.

Got a clear WHY, WHAT and how?

Dont worry, this will become a curated BiP ebook at some point.

mindmap
  root((SaaS Strategy))
    BRD: Business Why
      Strategy Layer
      ::icon(fa fa-briefcase)
      Market Pain Points
      Revenue Goals
      Competitor Edge
      ROI Metrics
    PRD: Product What
      Tactical Layer
      ::icon(fa fa-rocket)
      User Personas
      Core Features
      User Stories
      Success Metrics
    FRD: Functional How
      Execution Layer
      ::icon(fa fa-code)
      API Spec
      Data Models
      System Architecture
      Error Handling
    Indiehacker Fusion
      Lean Layer
      ::icon(fa fa-user)
      Single Source of Truth
      No-Go List
      V1 DB Schemamindmap

Are you also clearn on The “One Avatar, One Product, One Channel” strategy: Do you know who are you building it for?

graph TD
    %% Section 1: The Core Elements and their Immediate Result
    subgraph Core Strategy Elements
        A[1. One Avatar] --> B{Deep Understanding};
        C[2. One Product] --> D{Clarity of Offer};
        E[3. One Channel] --> F{Channel Mastery};
    end

    %% Section 2: The Combined Strategic Benefits
    subgraph Strategic Outcomes
        B --> G(Targeted Messaging);
        D --> H(Expert Positioning);
        F --> I(Maximized ROI);
    end

    %% Section 3: The Ultimate Goal (Focus)
    G & H & I --> J[Focus for Maximum Impact];

    %% Section 4: The Final Business Result
    J --> K((Rapid Growth & Profitability));

    %% Styling (Optional but recommended for visual clarity)
    style A fill:#A2D9CE,stroke:#333,stroke-width:2px
    style C fill:#A2D9CE,stroke:#333,stroke-width:2px
    style E fill:#A2D9CE,stroke:#333,stroke-width:2px
    style B fill:#F7DC6F,stroke:#333
    style D fill:#F7DC6F,stroke:#333
    style F fill:#F7DC6F,stroke:#333
    style J fill:#85C1E9,stroke:#333,stroke-width:3px
    style K fill:#58D683,stroke:#333,stroke-width:4px

Start building then!

AI

If you are one of those entrepreneurs who has managed to learn how to code.

source .env
#export OPENAI_API_KEY=sk-proj-...
#

Chances are that you are using AI/vibe coding techniques to build your next product.

Initial Prompts for Success

If you are by yourself, I recommend you to brainstorm with your LLMs about your ideas.

The outcome should be a clear goals (like a BRD) and execution plan for the agents to code for you.

Create a sth sth sth like... a Landing Page based on NextJS with a cool and modern UI

Include a `dockerfile` and `docker-compose.yml` that will control the title, description, open-graph image, favicon location and other global website variables via environment variables.

Add also a docker-compose.portainer.yml to use assuming that the image has been built already.

Create also a makefile with the following commands:

* `make help` - Show available commands
* `make install` - Prepare the dependencies for local development
* `make dev` - Run development server
* `make container` - Build and Run in Docker container

Create the `z-development-plan.md` with independent and testable phases that can be completed sequentially.

When it is completed, create a `z-walkthrough.md` with the steps to deploy the application and what each part of the tech stack does on a high level to bring the features to life.

Consider adding a Terms of Service / **terms and conditions and privacy policy** to the website, which will be governed by two separated markdown files.

Add also a faq section, that instead of been controlled via a json, lets have it controlled as per the frontmatter and content of separated markdown files inside the folder `faq`. The logic should read them in order as per their file name and show them in the right component of the UI.

> When these change, consider sending an email to your existing clients!

Consider adding **Umami web analytics capabilities** to the WebApp when using the container, by adding the possibility to feed the PUBLIC_UMAMI_SCRIPT_URL and PUBLIC_UMAMI_WEBSITE_ID to be used via <script defer src="" data-website-id=""></script>

If you are using Python, design proper functions with docstrings, so that the codebase is understandable, scalable and self-documenting.

# git init
# git branch -m main
# git config user.name
# git config --global user.name "JAlcocerT"
# git config --global user.name
# git add .
# git commit -m "Initial commit: Starting simple make xyz platform"

#sudo apt install gh
gh auth login
#gh repo create make-xyz --private --source=. --remote=origin --push
    
git init && git add . && git commit -m "Initial commit: simple landing website" && gh repo create make-xyz --private --source=. --remote=origin --push
###du -sh .
#docker stop $(docker ps -a -q) #stop all
#docker system df

Before starting any project, specially with AI agents, you should have clarity on the tech stack:

And if you need more:

SaaS CYA

Sample T&C and Priv Policy

BiP Examples

With all that clear, how about some examples?

Even a simple waiting list counts:

Waiting to Landing Repo

Source Code of the BiP waiting2landing concept

Bringing leads towards your sales pipeline is one of the crucial steps to succeed as an entrepreneur:

NEW - Make landing

Landing Page x TailWind x VanillaJS x email to SQLITE

NEW - Make landing

Creating the Waiting2Landing Concept x Formbricks

Even your agentic IDE that you use to code your business, are using Stripe to bill you.

This is all about the right answer to the right questions.

And the best way to know if someone values what you do, is if they are willing to pay for it (and how much)

Stripe Docs

Stripe Subscriptions and More

Using Stripe withing a Flask

Stripe 101 withing a SaaS PoC

SaaS KPIs

CAC, LTV, and Churn are the fundamental pillars of SaaS financial health

But they are all lagging indicators (they tell you what already happened).

When defining a customer avatar, you need leading indicators (metrics that predict future success) that align with their journey and behavior.

The essential KPIs for a SaaS business can be organized into three buckets: Financial, Acquisition, and Retention/Engagement.

I. Financial (The Core Health Metrics)

These are the metrics that measure revenue and profitability. You mentioned the big three, but here’s what else matters:

II. Acquisition & Conversion (The Avatar’s Journey)

These metrics map directly to the avatar’s journey from prospect to paying customer.

III. Retention & Engagement (The Avatar’s Happiness)

These are crucial product and customer success metrics that tie directly to the avatar’s Pain Points and Goals.

Focusing on these metrics alongside your avatar definition ensures you are not just defining who your customer is, but measuring how successfully your product and business model serve them.

You have hit on the most critical challenge in SaaS finance: the difference between long-term profitability (LTV:CAC) and short-term cash flow (capital efficiency).

A 3:1 LTV:CAC ratio means your business model is theoretically sound, but if it takes too long to collect that revenue, you will still run out of money.

Cash Flow vs High CAC Payback Period

The primary issue that could be hiding behind a healthy LTV:CAC is the CAC Payback Period, also known as Months to Recover CAC.

1. The Issue Explained

The formula for LTV is based on the gross profit generated over the entire estimated customer lifetime. If that lifetime is 5 years, the 3:1 ratio looks great, but you need to wait 5 years to realize that $3.

The Cash Flow Problem:

• You spend $1,000 today to acquire a customer (CAC).
• That customer pays $100/month (MRR) and has a gross margin of 80% (so $80/month in profit).
• CAC Payback Period: $$1000 / $80 = 12.5$ months.

You have to fund that $1,000 for 12.5 months before the customer pays it back. If you are a high-growth startup acquiring 100 new customers per month, you are spending $100,000 per month in the red, just to acquire customers whose payback is over a year away. This rapidly depletes your cash reserves, forcing you to constantly seek external funding, even if your LTV:CAC is 10:1!

2. Other Underlying Cash Flow Issues

While the Payback Period is the main culprit, other issues can compound the problem:

• Low Gross Margins: If your cost of goods sold (COGS)—like hosting, support, and integration costs—is very high, your gross profit per customer is low. This means your payback period lengthens dramatically.
• High Burn Rate: If your fixed operating expenses (salaries, rent, software tools) are growing faster than your MRR, your Net Burn (expenses - revenue) will remain high. The LTV:CAC only focuses on acquisition efficiency, not overall operational efficiency.
• Churning Before Payback: If your average customer leaves after 9 months, but your payback period is 12 months, you are losing money on every customer, regardless of what your projected LTV suggests.

🧭 Leading Indicators for Cash Flow & Viability

Leading indicators are what you track today to predict the financial and operational outcomes 6-12 months from now.

They are crucial for cash flow because they help you adjust your spending before you run out of money.

Here are the most important leading indicators in SaaS:

To manage cash flow, you must obsess over keeping your CAC Payback Period short - gurus tend to say < 1 month

And driving your NRR above 100%.