SaaS MVP Development: The Ultimate Guide

According to data from the Precedence Research resource, the worldwide SaaS market is estimated at USD 358.33 bln in 2024 and is expected to grow up to USD 1,251.35 bln by 2034 at a CAGR of 13.3%. Such demand is due to the ease of deployment of such solutions (instead of local installation, access to them is possible from any device with a purchased license where there is an Internet connection), as well as often extensive customization options. If you would like to launch your own SaaS solution, but are not yet sure about the final list of features, you should consider the SaaS MVP development option. 

What Is MVP in SaaS?

A minimum viable product (MVP) in the context of SaaS development is a version of a product where only the key functionality is implemented – that is, the one that determines the value of a specific SaaS solution for the end user. The goal of a SaaS MVP is to reduce development time by cutting down on secondary functionality, and to obtain user feedback to determine the course of implementation of a full-fledged SaaS version. 

SaaS MVP Development Benefits

What are the benefits of SaaS MVP development? Let’s find them out right now.

Ability to competently plan a budget and attract investments

Compared to implementing a full-fledged SaaS solution, MVP development is cheaper, since its task is to allow the target audience to test its key functionality in practice, without any excesses in the set of features and user experience (UX) design. This simplifies budget planning, too, as it does not require colossal expenses from the project owners from the very beginning. Also, thanks to this approach to development, its speed increases. Therefore, the working product can be presented to potential investors a few months from the start of work, and it will not just be a business plan in the form of a presentation, but a functioning software solution that can be applied to solve specific tasks. Usually, negotiations regarding further investment in such a project with this strong attribute (an MVP) are successful.

High productivity of the development team

Since an MVP has a limited number of features, your team will be freed from optimizing user interface. Therefore, work on the MVP will proceed faster. In addition, when developing such a software version, your team may gain valuable insights that were initially overlooked – they can also be implemented over time. Finally, when the solution’s functionality is limited, it is easier for developers to identify possible areas for improvement and, thus, address them in further development cycles associated with the launch of a full-fledged SaaS version.

Reduced time to market

An MVP approach allows you to release your solution first. Indeed, given the rapid development of the global SaaS market, this would be a wise move. A couple of months delay needed for implementing a full feature set could cost you the fact that your product's analog will appear and win the audience's favor first. At the same time, by launching your product as early as possible, you will also be able to start refining it earlier, too, ultimately receiving a SaaS platform with a lot of functions and advanced user experience after 9-12 months from the start of work on the project.

Common Challenges of Building a SaaS MVP

Along with all the benefits, it is also worth considering the possible challenges associated with SaaS MVP development.

Impossibility of applying the MVP concept to absolutely all products

It is worth starting with the fact that MVP development is not a universal approach, and not all products allow for feature prioritization. In particular, this applies to the ones in which all functions are interconnected, and it is not possible to single out the most priority ones among them.

Breaks in development cycles

It is important to understand that the release of the MVP in its first version is not always followed by the development of a full-fledged product. Sometimes, the team has to implement one or two more solutions with limited functionality before its participants come to a full understanding of the concept of the SaaS solution. Since the collected feedback may relate to non-overlapping functions of the product, the preferences and dissatisfaction of real users may not be fully covered in the full-fledged product.

The need to adopt new approaches to software development

Quite often, the development of MVP is accompanied by the introduction of radically new practices, such as Agile development and DevOps. In the long term, iterative development and other methods can increase the team's productivity by about a third, but the adoption and training can also take a lot of time for the team.

Possible issues with the program code stability 

Typically, MVP development of a cloud-based solution implies speeding up each development stage (in particular, the one related to testing the program code and its optimization). In this regard, it often happens that teams pay insufficient attention to the code stability, and the MVP solution itself becomes susceptible to hacker attacks. That is why, regardless of the chosen development approach and methodology, developers are still better off adhering to generally accepted standards for user data security and using proven authentication/authorization methods, reliable encryption protocols, access rights delimitation, etc.

Difficulty of scaling

Even though the MVP is initially hosted in the cloud, its computing power may not be enough if the product becomes really popular. In this regard, when choosing a cloud provider to ensure a scalable architecture, it makes sense to initially focus on options that allow automatic scaling as the workload on the software changes. Today, such type of service is provided by AWS, Microsoft Azure, and some other cloud vendors.

Problems with long-term budget planning

Lack of a clear understanding from the very beginning of what set of functions will be present in the final solution can provoke difficulties with budget planning, which, in turn, carries certain risks for investors. Therefore, it is important for you as a product owner to discuss with them all possible risks and prospects of your MVP launch strategy at the early stages of your interaction.

How to Build a SaaS MVP

So, how to build SaaS product – you may ask. Therefore, let’s consider the main steps you have to perform to develop an MVP. 

Defining the target audience

First, you will need to understand who the target audience of your SaaS solution is and what they expect to get from it. In fact, you will have to collect demographic and behavioral data about your product users to determine the most important functionality for the MVP and provide them with the most comfortable ways to interact with it.

Market research

To give your SaaS solution a unique selling proposition (i.e., to make it stand out from the competition in some way), you will need to conduct preliminary research that will determine both market trends in general and help identify the strengths and weaknesses of your competitors.

Identifying core functionality

Now, you have everything ready to determine the functionality that is the highest priority for your SaaS solution. Usually, this is the functionality that allows you to solve one or two key tasks assigned to your product (that is, without it, it will lose its value for the end user).

Choosing a business model

At this stage, you need to come up with ways to monetize your product. Note that in the context of SaaS, this is most often the purchase of either a license for a certain period of use or access to advanced functionality.

Building a roadmap

Now, you can create a step-by-step plan for implementing your solution, from MVP to launching and supporting a full-fledged SaaS product. Note that this is necessary not only for presenting the prospects of your project to investors and stakeholders, but also for the technical team to make them understand in which direction to move.

Creating an MVP

At this stage, your technical team can begin to build MVP, i.e., implement its user interface, server requests, database requests, alpha testing, etc.

Deploying an MVP and collecting user feedback

Once your team is confident that the MVP meets the previously defined specifications and everything works as intended, you can deploy it to the production environment and begin beta testing – that is, testing it on real users to gather feedback on possible improvements. After that, you will have to prioritize the aspects highlighted by users and plan to implement them in subsequent development cycles.

How to Accelerate SaaS MVP Development

Finally, let’s consider a number of best practices that will help you speed up the SaaS MVP development process:

• Use Backend as a Service (BaaS) and low-code solutions to reduce the amount of work for your backend and frontend specialists, respectively;
• Choose a time-tested technology stack that all members of your development team are familiar with;
• Delegate individual tasks within your project or the entire project to an outsourcing service provider to eliminate the need to urgently search for talent with the necessary skills;
• Establish processes for collecting feedback from users from the very beginning of work on your project.

SaaS MVP Development with Darly Solutions

Would you like to build an MVP as a Service solution and are looking for a seasoned team of developers who will bring your business idea to life? In this case, feel free to contact us. MVP as a Service is one of the key areas of our activity, which you can see for yourself by requesting our portfolio. You can also entrust us with individual tasks within your project, such as QA testing or, for example, UI/UX design. Whatever the list of our services you choose, rest assured that you will be satisfied with the results of our cooperation!