The Boring Apps Master Plan

My simple plan to build a multi-million software portfolio out of e-commerce apps.

Boring Apps is a reverse-venture studio that buys e-commerce tools with the aim of improving on them, growing them, and potentially selling them in the future.

Mission

• Provide indie devs with an easy way to exit their ventures and move on.

• Provide merchants with simple, boring apps that work well.

Financials

• Invest up to €1M in personal funds

• In 4-5 apps / avg. cash purchase price ~200k

• No deadline, look for great opportunities

• Target 50% portfolio growth YoY

• Use the cashflow to secure financing for further acquisitions

• Once the model is proven:

  • Raise capital from people in the indie-dev community at a fair valuation

  • Use the community investors to get advice & ambassadorship

Strategy

We’re not playing a financial game, we’re playing a human game.

Types of assets

• Buy “boring”, single-purpose Shopify apps, that are in distress because the founder wants to move on.

• Assets should have strong organic growth and have low-hanging improvements.

• Assets should have good margins and stable finances.

• Assets should be easy to explain and provide clear value.

• Ideally, assets will bundle well together.

Management

• Build a team & system to acquire, grow, and sell apps

• Share resources across apps.

• Keep the assets lite but try to delegate as much as possible.

Cashflow

1. Use cashflow for seller financing

2. Use cashflow to pay management cost

3. Use cashflow to grow ( with good ROI )

4. Use cashflow to finance new acquisitions

Dealflow

• Build in Public, be transparent, and engage with the community.

• Be flexible, come up with creative options, and offer win-win deals to founders

When to buy

• Always be open to buy

• Make money on acquisitions - Pay 2x-3x ARR for organically growing apps

When to sell

• Always be open to sell

• When someone offers a high multiple of 7X+

• When an app is underperforming and taking unnecessary attention

Values

• Use simple, back-of-the-napkin math

• Play the game of humans, not the game of finances

  • Buy from people who want to move on from an asset

    • Because they have better things to do

    • Because they are tired