Oct 17, 2026 · 22 min · 11 segments
Interview with Stuart Faught, who is a software entrepreneur who has built and sold more than 20 SaaS businesses and was recognized as the #1 seller on Acquire.com. Today, he is the founder of…
Stuart FaughtGuestVictor DadajHostSo, since, you know, you're majoring, you know, dealing with the software company, the software businesses, and I know there's a lot, uh, lot of, lot of them out there.
... for those that are looking to, um, you know, you know, for w- working in that, how would... how does one find the right niche for a software business?
Um, so every time I sell one of my, you know, software companies, my recommendation to my buyers is, you know, "Hey, don't try to be everything to everyone.
Pick a, a small niche and one that you can kind of start with and, and dominate." And my, you know, what I've found best works for me is, you know, choosing verticals that I have some expertise in, um, that I'm interested in, and that ideally have the, the budget for what I'm selling.
So if I'm selling a software product that's, you know, 400 bucks a month, I know that if I go and I sell that to flower shops, um, it might not be super doable.
But if I have a $400 a month product that I'm selling to, you know, specialty doctors, it's, it's doable, you know? And so I, I like to think through those things before picking a new niche.
'Cause it seems that I think a lot of entrepreneurs, no matter whether it's software or anything else, they, they feel like they gotta market certain.
So how does someone avoid that, uh, getting involved in doing that and focusing on a certain niche, like you mentioned, like maybe, you know, specialty doctors?
I think the, the tendency, right, when you're first starting out in entrepreneurship is to, you know, you... because you're, you're so hungry and you wanna be able to make money quickly, you think, ironically, that, you know, "If I offer everything to everyone, then I'll make money." Um, but really it works the opposite.
And so your message, especially, you know, online, it's gonna resonate with people the more narrow of a niche that you have.
And so, you know, for me, when I'm, uh, you know, in a, in a narrow niche, when I do reach out to potential partners that are in that same space, they are super responsive and open to doing things with me because we both share that, that, you know, that common narrow vertical.
No, I totally agree with you, because you have a lot in common, you are definitely more willing to work with anybody.
It's like, you know, if you run a steakhouse, you're not gonna be able to get a vegetarian to eat there.
So, since, you know, you're majoring, you know, dealing with the software company, the software businesses, and I know there's a lot, uh, lot of, lot of them out there.
... for those that are looking to, um, you know, you know, for w- working in that, how would... how does one find the right niche for a software business?
Um, so every time I sell one of my, you know, software companies, my recommendation to my buyers is, you know, "Hey, don't try to be everything to everyone.
Pick a, a small niche and one that you can kind of start with and, and dominate." And my, you know, what I've found best works for me is, you know, choosing verticals that I have some expertise in, um, that I'm interested in, and that ideally have the, the budget for what I'm selling.
So if I'm selling a software product that's, you know, 400 bucks a month, I know that if I go and I sell that to flower shops, um, it might not be super doable.
But if I have a $400 a month product that I'm selling to, you know, specialty doctors, it's, it's doable, you know? And so I, I like to think through those things before picking a new niche.
'Cause it seems that I think a lot of entrepreneurs, no matter whether it's software or anything else, they, they feel like they gotta market certain.
So how does someone avoid that, uh, getting involved in doing that and focusing on a certain niche, like you mentioned, like maybe, you know, specialty doctors?
I think the, the tendency, right, when you're first starting out in entrepreneurship is to, you know, you... because you're, you're so hungry and you wanna be able to make money quickly, you think, ironically, that, you know, "If I offer everything to everyone, then I'll make money." Um, but really it works the opposite.
And so your message, especially, you know, online, it's gonna resonate with people the more narrow of a niche that you have.
And so, you know, for me, when I'm, uh, you know, in a, in a narrow niche, when I do reach out to potential partners that are in that same space, they are super responsive and open to doing things with me because we both share that, that, you know, that common narrow vertical.
No, I totally agree with you, because you have a lot in common, you are definitely more willing to work with anybody.
It's like, you know, if you run a steakhouse, you're not gonna be able to get a vegetarian to eat there.
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