Key Takeaways
- The faster you build a SaaS product, the sooner you collect user thoughts to make further improvements.
- By making only the vital functionalities, development costs are minimized, avoiding over-investment.
- What the MVP approach gives you is the overview of how a product is perceived by the audience and whether it truly satisfies customers’ wants.
Have you ever thought about how competitive it is in the world of entrepreneurship? According to Statista, in March 2023, there were around 1.05 million businesses in the US only that were less than 1 year old.
Number of US businesses less than 1 year old, Statista
Indeed, even though the statistics seem to be not on the side of newbie entrepreneurs, there are a huge number of unicorn companies in the world that prove that with a good idea and an understanding of your target audience, you can conquer any height.
The term unicorn describes companies valued at $1 billion or more. CB Insights data suggests that there are presently around 1,200 of these companies worldwide. What is their secret?
In fact, most of the world’s unicorns had unpretentious beginnings before they were uncovered by influential entrepreneurs and investors. They didn’t want to risk it all and started small with an MVP to test the market.
Why Start with an MVP for Your SaaS Project?
An MVP (Minimum Viable Product) is a basic, austere version of the forthcoming product. It contains all the elements needed to function but usually leaves space to add more in case this version proves successful.
If you build a Minimum Viable Product, you can very quickly test your idea with just the most important features, so that you can feel out demand for your product without investing much time or capital.
By launching a SaaS MVP, you keep costs lower, too. Instead of making every feature you imagine, you create just the bare bones that solve your users’ main problem.
The MVP will make it easier to improve your product. With feedback, you’ll be able to modify and add features that are actually wanted by users. In this way, you gradually build up a better product—possibly with happier and more loyal customers.
In case you are looking for investors or trying to convince people about your project, the MVP will be great to show that it really works. You can show that there are users already interested, which means it’s easier to get sponsorship and subsidies.
4 Popular SaaS MVP Types to Consider
By the way, the MVP concept is quite multifaceted and offers several options to assemble and introduce the basic product of a SaaS application.
Wizard of Oz MVP
In this case, the back-end operations are done manually, but they are made to look as if they have been automated. Following this route helps in testing the core features of your SaaS product without necessarily building an extensive backend.
Concierge MVP
This course keeps personal service for a small group of users. You will see how they interact with your product and know what they need in advance of automating more complex features.
Piecemeal MVP
Piecemeal means stitching together an MVP using already-existing third-party tools and services. With this approach, you will have a working prototype of your SaaS product up and running in no time.
Single-Feature MVP
In this type of MVP, you center around just a single feature of your product. This is the most explicit approach to validate your idea of a product and collect user ideas before you expound on other parts.
Essential Stages of MVP Development
Although developing an MVP is not as risky as developing a full-fledged product, it is important to have a clear plan and understanding of what to prepare for and what to go through.
Step 1: Begin with Intense User Research
Now, it’s time to build your MVP. First, you need to understand who your target audience is. Perform some market research: conduct surveys and interview people to understand potential users face problems, what they need, and what they want.
Step 2: Specify Primary Functionality and Technical Specs
When you understand your users, the next step will be to explain what your MVP is to actually do. Be clear about what the product must include and what mustn’t, and write technical specifications that will be necessary for steering the development process.
Step 3: Design Your MVP for Usability
Even if your MVP is minimal, it still has to be very usable. A clean and intuitive design would be required in this respect. Early testing of the design through wireframes or prototypes will confirm that users are able to flow with the product with ease.
Step 4: Build the MVP Leaving Space for Modifications
Consider, next, how the MVP will be extended. The architecture of your MVP should allow scaling when the base is broadening and the product is developing. It will save time and resources in the future when it will be needed to add more components or regulate the increase in users.
Step 5: Test Early, Test Often
When your MVP is built, probe it with a small cadre of users. Gather their thoughts and proposals and use them to alter the product. This process helps your MVP get better over time and meet demands even closer.
Tips to Accelerate SaaS MVP Development
The development of an MVP requires speed. That means you can try different strategies to improve your pace.
You can outsource part of or the entire workload to experienced outsourcing development companies, such as SCAND, which will take away heavy loads from you and speed up the whole development process.
Other ways of speeding up MVP development include applying third-party prebuilt tools, platforms, and APIs. Instead of developing everything from scratch, you can intermix pre-existing pieces of solutions that come with core functionality.
Predefined components, along with drag-and-drop features, mean you can bring your MVP into being much faster, even without technical experience.
Avoiding Common MVP Development Pitfalls for SaaS Startups
When developing your MVP, it’s important to avoid common pitfalls that can slow down your progress or hinder your success.
First and foremost: never guess about user lacks; decisions should always be based on real active data and feedback from users so that the product really solves their problems.
The second risk is trying to direct every single aspect in-house. Even though it may seem rational and sensible, attempting to head every part of development will delay your release.
Equally tempting is the urge to stuff your MVP with a lot of features; this will only overcomplicate the development and slow things down.
Finally, when your MVP is launched, do not let it just stay that way. Refining and continuously amending your product based on user opinions about it and data is what will actually drive success.
The SCAND Advantage: What You Can Expect from Working with Us
At SCAND, we’ve got over 20 years of experience in building successful software solutions, with a clear process worked out that works for MVP development, too.
You will get a team of full-stack developers with know-how in more than 200 projects completed in many industries. We understand how much speed matters, so we’ll make everything possible without lowering the quality of your MVP.
Frequently Asked Questions (FAQ)
What is a SaaS MVP?
A SaaS MVP means the minimum viable product of your software that contains only those features which would help solve a specific problem for which the target audience was looking for.
What advantages does an MVP provide for SaaS?
MVP helps you to validate your idea with real users, reduce risks, get feedback, and develop a better product with less time consumption and low cost.
How do I select the right MVP type for my project?
Choose an MVP type according to your goals, resources, and timeline. For example, in case you need fast feedback on one feature, choose a Single-Feature MVP. If you test some automation concepts, a Wizard of Oz MVP is probably what you need.
How can I speed up MVP development?
Speed up development by outsourcing, using pre-developed tools, and low-code platforms. Collaboration with an experienced development team will also reduce the development cycle.
What’s a typical budget for a SaaS MVP?
The budget of a SaaS MVP depends on the level of complexity, number of features, and experience of the team. The general estimated budget lies within the range from $15k. Also, one should prioritize features to fit a given budget.