SaaS MVP: An Efficient Way to Stand Out in your Market in 2024

The SaaS revolution is in full swing, with companies embracing an average of 130 applications and even more on the horizon. However, this burgeoning market presents a double-edged sword. While opportunities abound, navigating them requires precision, as a staggering 90% of software companies fail to find their footing within 3 years. Mastering product-market fit and building a resilient business strategy becomes the key to unlocking sustainable success in this dynamic landscape. 

Indeed, the SaaS market is a raging ocean, teeming with opportunities but fraught with dangers. In 2024, standing out from the crowd requires more than just a good idea. You need a strategic approach, a lean and mean MVP (Minimum Viable Product), and a roadmap to carve your niche in the ever-evolving landscape. This article is your guide to navigating this competitive terrain, equipping you with the knowledge and tools to build a SaaS MVP that turns heads and sets you on the path to sustainable success.

saas mvp

1. What is a SaaS MVP?


SaaS (standing for Software as a Service) is a software distribution model that offers cloud-based software for end-users from a cloud vendor via a smartphone or web interface. For instance, Dropbox, Canva, Slack and Google Docs are SaaS platforms.

SaaS applications are typically accessed by users of a web browser. It is considered to be part of cloud computing, along with several other as a service business model. With SaaS, customers do not have to install and maintain the software on their own computers or servers. Instead, they access the software over the internet and pay a subscription fee to the service provider. It can be a cost-effective and scalable solution for businesses of all sizes. This way, SaaS companies also benefit from the recurring revenue.


So, what is a SaaS MVP (Minimum Viable Product)? It is a very basic version of a SaaS app that focuses on the core features needed to solve a specific problem for target customers. It’s like a tripped-down prototype designed to gather feedback and validate your product idea before investing heavily in development and marketing.

Here are some examples of SaaS MVPs:

  • Landing page with a signup form: This validates if there’s interest in your idea before building the actual product.
  • Single-feature version: Focus on the core functionality and launch it to a limited audience.
  • Manually-operated service: Mimic the automated features manually to test the demand and gather feedback.

2. Why Build an MVP for SaaS?

Reduced Risk and Increased Success

  • Market Validation: Launching a full-fledged SaaS product without testing the waters is like jumping into a dark pool. An MVP acts as a life raft, providing a safe way to gauge user interest and assess market demand before committing significant resources. You can gather real-world feedback on your value proposition, identify potential flaws, and pivot effectively if needed.
  • Minimize Development Costs: Building a complex SaaS product with bells and whistles can be a budget-draining endeavor. An MVP helps avoid sunk costs by focusing on core functionalities that deliver immediate value. This lean approach allows you to prioritize essential features, reduce development time, and optimize resource allocation, saving precious funds for future iterations.
  • Fail Fast and Learn Quickly: Failure isn’t a dirty word; it’s a valuable learning opportunity. An MVP provides a safe space to fail early and fail cheap. If users aren’t receptive, you can quickly tweak your concept, identify areas for improvement, and adapt your product based on their feedback. This iterative process leads to a product that truly resonates with your target audience, increasing your chances of long-term success.

Increased Efficiency and Agility

  • Faster Time to Market: Forget about waiting years to launch your masterpiece. An MVP allows you to get your product in front of users sooner, capturing early adopters and establishing a user base while your competitors are still polishing their prototypes. This early traction can pave the way for faster growth and a stronger market position.
  • Lean Development in Action: Instead of getting bogged down in long development cycles, an MVP promotes an agile approach. You can continuously iterate and improve your product based on user feedback, releasing new features and enhancements in smaller, more manageable chunks. This rapid development loop keeps your product fresh, relevant, and responsive to market needs.
  • Resource Optimization Made Easy: Imagine having a map to navigate your development journey. User feedback from the MVP serves as that map, guiding you towards the features that deliver the most value and impact. By focusing resources on these priorities, you can maximize your development efforts and ensure your product resonates with your target audience.

Enhanced User Engagement and Product Development:

  • Valuable User Insights: Building a product in a vacuum rarely leads to success. An MVP opens a two-way communication channel with your users, allowing you to collect valuable feedback on their needs, pain points, and expectations. This real-world data provides a treasure trove of insights that can be used to refine your product, prioritize features, and ensure you’re solving the right problems for your target audience.
  • Prioritize Features with Confidence: Imagine throwing darts in the dark, hoping to hit the bullseye. User feedback from the MVP provides a laser sight, guiding you towards the features that will offer the most value and drive user engagement. By prioritizing features based on user preferences, you can ensure your development efforts are aligned with actual customer needs, maximizing the return on your investment.
  • Build Brand Loyalty from the Ground Up: Early adopters who contribute to your MVP’s development feel invested in its success. They become your champions, evangelizing your product and fostering a strong sense of community around your brand. This early loyalty sets the stage for long-term customer relationships and sustainable growth.

3. Stages of Building a SaaS MVP

Building a successful SaaS MVP involves several crucial stages, each playing a key role in bringing your vision to life. Here’s a breakdown of the main stages

3.1. Define Your Value Proposition

Before stepping into the development stage, you should create a detailed customer persona, let’s try to answer some questions below:

  • Identify your target audience: Who are you building the product for? What are their needs and pain points?
  • Articulate your core value proposition: What problem does your SaaS solve? How does it make your target audience’s lives better?
  • Differentiate yourself: What makes your solution unique compared to existing competitors?

A tip for you is to focus on one specific problem and decide on the best way to solve it.

In fact, about 19% of unsuccessful startups didn’t pay enough attention to their competitors. You should conduct a thorough research about your market, as well as your competitors. Use platforms like Crunchbase and Product Hunt to find both direct and indirect competitors.

3.2. Prioritize Features and Functionality

Many SaaS companies add a lot of unnecessary features to their SaaS MVPs, making them too complex. Don’t forget that it is not your end-product and focus on the bare minimum functionality needed to test your product’s viability.

  • Map your features to your value proposition: Only include features that directly address the core problem you’re solving.
  • Minimize complexity: Focus on the essential functionalities that deliver immediate value. Remember, you can always add more features later. For instance, an MVP for a healthcare SaaS platform might need document, client, and invoice management, as well as robust security to ensure regulatory compliance. However, you wouldn’t need time-tracking, customer relationship management, and marketing expansion extension from the get-go.
  • Set realistic expectations: Don’t try to do everything at once. Prioritize features that can be implemented within your budget and timeframe.
  • Choose a business model: Most SaaS companies stick to the subscription-based revenue model. Monthly recurring payments help convert more customers, as they incur less initial costs. In addition, according to the 2021 research by the Lahti University of Technology, 54% of SaaS companies use tiered pricing (different price points based on a number of criteria), and 27% develop their own hybrid strategy based on the tier-based model.

3.3. Design and Prototype

  • Create a user-friendly interface: Your MVP should be easy to use and understand, even for first-time users.
  • Focus on core functionality: Don’t worry about making it visually stunning; prioritize usability and efficiency.
  • Develop a low-fidelity prototype: This can be a wireframe, mockup, or even a manually operated process that mimics the core functionalities.

3.4. Launch and Gather Feedback

  • Deploy your MVP to a limited audience: Start with early adopters, beta testers, or a small group of potential customers. You won’t know if your MVP is up to the mark unless a sufficient number of people get to try it out. This is why you must showcase your product.
  • Make it easy for users to provide feedback: Use surveys, interviews, in-app feedback tools, and direct communication channels. 
  • Actively listen and analyze feedback: Pay attention to what users are saying and identify recurring themes. You should also create a tight feedback loop with your customers to learn if your MVP generates enough demand to warrant full-scale development, what customers like and dislike about your product, if your business model fits your solution and if the pricing strategy is appropriate compared to other products.

4. Ways to speed up SaaS MVP development

Backend as a Service (BaaS)

  • Pre-built infrastructure: BaaS platforms like Firebase, AWS Amplify, or Parse offer ready-made infrastructure for common functionalities like authentication, storage, databases, and notifications. This eliminates the need to build and maintain these components yourself, saving significant time and resources.
  • Faster Development: BaaS APIs and SDKs simplify backend development, allowing developers to focus on building core features and logic instead of struggling with low-level infrastructure.
  • Scalability: BaaS solutions scale automatically to accommodate your growing user base, reducing the need for manual intervention and infrastructure upgrades.

Low-code Platforms:

  • Drag-and-Drop interfaces: Low-code platforms like Mendix, OutSystems, or Appian allow you to build your MVP visually with minimal coding, making development accessible even to non-technical users.
  • Faster Prototyping: Low-code platforms enable rapid prototyping and iteration, allowing you to quickly test and refine your MVP before investing in full-fledged development.
  • Reduced Complexity: These platforms abstract away complex coding tasks, making development faster and more efficient for both technical and non-technical teams.
  • Focus on established technologies: Choosing popular tech stacks like MEAN (MongoDB, Express.js, AngularJS, Node.js) or LAMP (Linux, Apache, MySQL, PHP) provides access to a large pool of developers and pre-built libraries, accelerating development and reducing technical risks.
  • Existing resources and communities: These tech stacks have extensive communities and documentation, making it easier to find answers to technical challenges and leverage existing solutions.
  • Scalability and performance: Popular tech stacks are often optimized for scalability and performance, ensuring your MVP can handle growing user traffic smoothly.

Open-source tools

  • Free and readily available: Utilize open-source libraries and frameworks like ReactJS, Bootstrap, or Material UI to speed up development without incurring additional licensing costs.
  • Community support: Large communities of developers contribute to and maintain open-source tools, providing access to pre-built components and solutions for common problems.
  • Customization: Open-source tools often offer greater flexibility and customization options compared to proprietary solutions.

Manually processed services:

  • Validate core value proposition: Consider manually mimicking key functionalities initially to test the concept and gather valuable user feedback before investing in full automation.
  • Reduce development costs: This approach can be significantly cheaper than building a fully automated system initially, especially for simple MVPs.
  • Focus on user experience: Manual processes allow you to provide personalized support and gather in-depth user feedback during the early stages of development.

5. SaaS MVP Development Cost

Pinpointing the exact cost of building your SaaS MVP is tricky, like hitting a moving target. Lots of factors come into play, but here are the main ones experts consider:

  • Fancy features: The more bells and whistles you want, the longer and pricier it takes to build.
  • Tech toolbox: Different tools work better for different jobs, and some require more expertise (and cash).
  • Design delights: A beautiful interface is great, but keep it budget-friendly.
  • External connections: Integrating with other systems can add complexity and cost, depending on how tricky it is and if you need to pay for anything.
  • Team location: Outsourcing can save you money compared to an in-house team.

So, what’s the rough estimate for your SaaS MVP? Expect a range of $70,000-$150,000 and beyond. But here’s the secret sauce: partnering with a seasoned SaaS development vendor can be your saving grace. Outsourcing can cut costs and deliver a quality solution that rivals any in-house creation. So, ditch the development stress and let the experts take the lead!


Building a SaaS MVP is not a sprint, it’s a marathon. It’s a journey of continuous learning, adaptation, and refinement. By following the principles outlined in this article, you’ve taken the first crucial steps towards carving your niche in the dynamic SaaS landscape.

Remember, your MVP is not the finish line, but the starting gate. Embrace user feedback, iterate with agility, and scale your offering with purpose. By staying focused on your core value proposition and constantly evolving, you’ll not only stand out in the market, but you’ll build a sustainable business that thrives in the ever-changing world of SaaS.

If you do not know what SaaS is and are still searching for a reliable business companion, don’t hesitate to contact AgileTech. With our experienced team of developers, we will give you a detailed plan and estimation of any of your SaaS ideas that meet all your expectations. For further discussion and free consulting time, please contact us at [email protected] or fill in the registration form for a 30-minute meeting with our IT experts.

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