SaaS, Agency, or job?

Recently, I was fired, and since I have some savings, I decided it’s finally time to start my own venture. After a couple of weeks of research and trying to figure out what I should do, here are my thoughts and some questions at the end. I’d appreciate any feedback or opinions.

It’s not that I expect to wake up a multimillionaire, but I see how people make money without working the typical 9-5. Some of the worst examples are on YouTube—those agency, OFM, dropshipping hustle bros. I know it’s naive to believe all of it because they’re just selling courses, but some of them do seem to have built impressive income streams. Anyway, let’s dive into two categories and compare.

Agency (providing services, development, consultation): I’ll talk about AI automation because of my background in ML Engineering and Generative AI, but this could apply to any other agency niche. It seems like a good business idea for someone who knows generative AI and can do some impressive things with LLMs, agents, etc. I even started working on it—built a website—but I stopped when I couldn’t define exactly what services to offer. I could do heavy backend tasks with infrastructure, like real machine learning and AI with fine-tuning, but I couldn’t find any examples of agencies doing this. Almost 100% of them are doing simple automations with tools like Zapier or Make. When it comes to business owners, it’s really hard to find clients in general. After reading Reddit threads, articles, and watching videos, it seems like nearly everyone struggles with client acquisition. For a one-person agency offering more complex services like real ML, it would likely be even harder to find clients, compared to big outsourcing companies with sales teams. Even without focusing on the client challenge, which is obvious in any business, looking at what successful agency owners earn, it’s usually around $100k–$200k a year. I’m not talking about the high end, just regular people. I got this information from reading, and a simple example is from interviews with people who claim to make $10k/month. But many others in these communities struggle to even reach that point. It seems like this is a difficult target for most people.

SaaS: This area seems more straightforward, and with my background, it feels like a good fit. However, from reading different sources, I’ve found stories like, “It took me six months to get my first client,” or “I worked on a simple SaaS for nine months and just reached my first $1k.” There are also warnings not to believe those who claim to make $10k/month easily, and many people report struggling to grow after getting their first 10 clients. So, it’s clear to me that even with good tech skills, you’re not going to make massive amounts of money overnight, which I understand. However, with so many people becoming startup founders and indie hackers, many seem to struggle despite thinking it’s the way to go.

I know both paths can potentially skyrocket, but here’s where I need help:

1. Am I wrong about agencies?

2. Am I wrong about SaaS?

3. The toughest question for me: I don’t want to go back to a 9-5 job, even if I could earn $300k a year. Even if my own business takes more time and I earn less in the first few years, I still believe it will be more profitable long term, and I will be happier. So, should I pursue an agency, SaaS, or a traditional job?