The Power of Writing and the Future of Vertical SaaS

The Power of Writing and the Future of Vertical SaaS

Introduction:
Dedicating time to study something not only enhances our knowledge but also provides us with a new appreciation for the subject matter. In my experience, writing played a crucial role in my studying process, serving both as a means to unpack my feelings about what I was learning and as a tool to record and retain important information. This article explores the significance of writing and its connection to knowledge acquisition, while also delving into the potential implications of AI on the future of Vertical SaaS.

The Importance of Writing:
Journal keeping and record keeping are two essential functions of writing when it comes to the learning process. By journaling, we can delve into our thoughts and emotions regarding the topics we're studying, enabling a deeper understanding and connection to the subject matter. Additionally, keeping records helps us retain important information, ensuring that it doesn't fade from our memory. As Wilford Woodruff stated, "We shall never spend the time of this evening again. Then should we not keep a record of our work, teachings, and counsel that we give? We should."

Knowing the Source of Knowledge:
A.A. Hodge emphasized the importance of knowing the source of knowledge and being aware of who has written it and where it can be found. This notion highlights the significance of credibility and reliability when it comes to seeking knowledge. By understanding the source, we can evaluate the information critically and ensure that we are basing our understanding on reliable foundations.

Consistency and Atomic Units of Thought:
Consistency is key when it comes to writing. As Paul Graham noted, writing a page a day may not seem like much, but if done consistently, it can lead to the creation of a book each year. Consistency allows us to build momentum and make progress over time. Moreover, the concept of identifying "atomic units of thought" is crucial. Observations alone do not constitute thoughts; rather, thoughts are formed by piecing together these observations. By collecting these atomic units of thought, we can create meaningful and coherent written pieces.

The Impact of AI on Vertical SaaS:
AI has the potential to revolutionize the field of Vertical SaaS, but it also brings forth certain challenges. With the advent of AI-based development tools, the migration process between software solutions becomes quicker and more efficient. This ease of switching may increase churn rates, making Vertical SaaS a less attractive investment. Additionally, the affordability of building software compared to buying it might lead to a shift in the build vs buy decisions, favoring internal development. This shift could result in a surge of non-venture backable software companies that offer niche products but lack scalability.

The Fragmented Software Market:
As the cost of software development decreases, we can expect to see a rise in the number of software solutions available. This influx of software may lead to more fragmented software markets, characterized by numerous $15M revenue companies with small teams and limited growth potential. The complexity and overhead involved in creating custom software could hinder the full realization of the benefits of rapid low-cost software creation, as it may create a bottleneck in the requirements-to-prompt process.

Actionable Advice:

1. Embrace the power of writing: Dedicate time to journaling and record keeping as you study. This practice will enhance your understanding and retention of knowledge.
2. Foster consistency: Commit to writing regularly, even if it's just a page a day. Consistency is key to making progress and achieving your writing goals.
3. Stay informed about industry trends: Keep an eye on the developments in AI and Vertical SaaS to adapt and make informed decisions. Understand the potential impacts and prepare accordingly.

Conclusion:
Writing holds immense power when it comes to deepening our understanding of various subjects. It enables us to unpack our thoughts and emotions, record essential information, and mold observations into coherent thoughts. However, as AI progresses, it may bring significant changes to the world of Vertical SaaS, potentially impacting investment decisions and the software market landscape. By embracing the power of writing and staying informed about industry trends, we can navigate these changes and continue to harness the benefits of knowledge acquisition and software development.