7 Practical Tips to Build an MVP for a SaaS Startup - A2 Design

7 Practical Tips to Build an MVP for a SaaS Startup

7 Practical Tips to Build an MVP for a SaaS Startup

Starting a SaaS (Software as a Service) business can be exciting and challenging at the same time. The market is highly competitive, and success depends on several factors, including the ability to build a minimum viable product (MVP) that resonates with users. An MVP is a critical tool for startups to validate their ideas and test the market before investing significant resources into product development. However, building an MVP that meets user needs and delivers value can be a daunting task for any startup. In this blog post, we’ll discuss seven practical tips to help you build a successful MVP for your SaaS startup.

What is a SAAS MVP?

A SaaS (Software as a Service) MVP (Minimum Viable Product) is a basic version of a SaaS product that has just enough features to satisfy early customers and test the market demand. A SaaS product is a software application that is accessed over the internet via a subscription model.

A SaaS MVP typically includes the core functionalities of the product and is designed to provide value to users from day one. This can include features such as user registration, login, and dashboard; basic data input and output functionalities; and a simple user interface that allows users to easily navigate and use the product.

A SaaS MVP’s main functions are to test a product idea’s viability and gather early adopters’ input in order to improve the product and add new features as needed. Before expanding their business, entrepreneurs can reduce their time and financial outlays by developing a SaaS MVP to demonstrate the market demand for their product.

A SaaS (Software as a Service) MVP (Minimum Viable Product)

Once you conceive an idea for a product or service, it’s crucial to assess its viability before putting in the effort. One way to do this is by creating an MVP, which is a functional prototype that can be scaled later on. It’s important to note that the MVP may not necessarily match your original idea and could be somewhat or completely different.

Product coach for Spotify, Henrik Kniberg, provided a compelling illustration of product versions that proves this point. Each new version is based on end-user satisfaction and varies from the previous one, resulting in two distinct products with different features and functionality from the initial idea.

Factors contributing to startup failure

Startups fail for various reasons, including lack of market need, poor execution, and insufficient funding. One of the main factors contributing to startup failure is the inability to build a product that meets user needs and delivers value. Building an MVP can help you avoid this pitfall by testing the market and validating your business idea before investing significant resources into product development.

In essence, the key driver of the development path for your SaaS product idea is your audience, early adopters, and end-users. Their needs and pain points should guide the evolution of your product as you strive to find the most efficient and effective solution to their problems.

Check the Best Metrics to Measure the Success of an MVP.

7 Practical tips to build an MVP for a SAAS startup

Here are 7 practical tips to build an MVP for a SAAS startup

1. Plan Your Product’s Sales Strategy

One of the common mistakes made by technical founders is neglecting sales and marketing. While building a great product is essential, it’s equally important to have a sales plan in place to drive revenue growth. Sales planning involves identifying your target audience, understanding their needs and pain points, and developing a sales strategy that resonates with them.

Have a robust sales plan for your SAAS startup MVP

Plan for your SAAS startup MVP

Technical founders often prioritize product development over sales and marketing, assuming that the product will sell itself. However, without a robust sales plan, even the best product may not succeed in the market. Technical founders should work with sales and marketing professionals to develop a sales strategy that aligns with the product’s value proposition.

Importance of monetization and ROI for sustainable growth

Monetization is the process of generating revenue from your product. It’s essential to have a monetization strategy in place from the beginning to ensure sustainable growth. A monetization strategy should align with the product’s value proposition and provide a clear return on investment (ROI) for users.

2. Identify Critical Features for Your MVP

One of the common mistakes made by startups is trying to build a product with too many features. The MVP should focus on the essential features that solve a user’s pain points and deliver value. Prioritizing features is critical to keep the product simple and easy to use.

Avoiding unnecessary complexity

Avoiding unnecessary complexity is essential in MVP development. A simple, easy-to-use product is more likely to resonate with users and gain traction in the market. Startups should focus on building a product that solves a specific problem for a specific audience rather than trying to appeal to everyone.

Niche positioning and competition analysis

MVP (Minimum Viable Product)

Niche positioning involves identifying a specific audience with a specific need and building a product that addresses that need. Niche products are more likely to resonate with users and gain traction in the market. Competition analysis is also critical to identify gaps in the market and build a product that stands out from the competition.

Solving unique problems better than competitors

To succeed in a competitive market, startups must solve unique problems better than their competitors.Be diligent in identifying the problem, developing key features, testing with users, continuously improving, and differentiating yourself from competitors.

3. Select the Best Platform for Your Product

Choosing the right platform for your SaaS product is crucial to ensure its success. The platform should be selected based on the product’s purpose, target audience, and development needs. Here are some factors to consider when choosing a platform for your SaaS product:

Choosing the most suitable platform based on product purpose

The platform you choose should align with the purpose of your product. For example, if your product is designed for businesses, you may want to consider a platform that supports integrations with other business tools such as CRMs, ERPs, and accounting software. Alternatively, if your product is designed for individual users, a mobile-first platform might be a better choice.

Understanding user behavior and preferences

Your target audience’s behavior and preferences should be a significant factor in your platform selection process. For instance, if your product’s primary audience is millennials or Gen Z, you may want to consider a platform that aligns with their tech-savvy lifestyles, such as mobile or social media platforms.

Balancing cost and development time

A SaaS (Software as a Service)

Cost and development time are essential factors when choosing a platform. Some platforms may be more expensive, but they may offer faster development times and better support. Conversely, some platforms may be more affordable, but they may require more time and effort to develop on. You should weigh the costs and benefits of each platform before making a final decision.

Selecting the right platform for your SaaS product is critical for success. You should consider the purpose of your product, user behavior and preferences, and the balance between cost and development time when selecting a platform. By choosing the best platform for your product, you can ensure that your MVP will be launched on a stable, scalable, and suitable platform.

4. Scale Your Product Efficiently

Scalability is crucial to the long-term success of any SaaS startup. It allows the product to grow and adapt as user numbers increase, while also ensuring the system can handle increased demand. A scalable product will ensure that users have a seamless experience even as the number of users grows.

Avoiding over-engineering for unrealistic user numbers

It’s important to remember that scalability is not about building for unrealistic user numbers. It’s about building a product that can handle increased user numbers without breaking. Over-engineering can lead to increased development costs and delayed launches, which can ultimately harm the startup’s success.

Building for scale when necessary

While it’s important not to over-engineer, it’s also important to build for scale when necessary. Building a scalable product means designing it in a way that can handle increased traffic and demand without sacrificing performance or user experience. It’s important to plan for scalability from the beginning, but also to be ready to make changes as the product grows.

5. Optimize User Experience

User experience (UX) is critical to the success of any SaaS startup. A well-designed product with a great user experience can help retain users and increase engagement, leading to better retention and revenue.

Designing for the user journey and needs

User experience (UX) User interface (UI)

Designing for the user journey means creating a product that is easy to use and understand. It should be intuitive and simple, with clear navigation and easy-to-use features. User needs should be at the center of product design, and all decisions should be made with the user in mind.

Prioritizing user experience in MVP development

Prioritizing user experience in MVP development means focusing on the most important features and ensuring they are easy to use and understand. It’s important to get feedback from users early and often, so the product can be iterated and improved based on user needs and feedback.

6. Build the Right Team

Building the right team is essential to the success of any SaaS startup. The team should be made up of individuals with complementary skills and a shared vision for the product. It’s important to have a mix of technical and business expertise, as well as a passion for the product and a commitment to its success.

There are several options for assembling a team, including hiring freelancers, working with a company, or building an in-house team. Each option has its pros and cons, and it’s important to evaluate each one based on the startup’s needs and budget.

Working with freelancers can provide flexibility and cost savings, but it can also be challenging to manage and ensure quality. Working with a company can provide access to a broader range of expertise, but can also be expensive. Building an in-house team can provide more control and faster iteration, but can also be expensive and require more time to build.

7. Continuously gather user feedback and iterate based on it

After launching your MVP, it’s important to gather feedback from users and iterate based on it. Continuously collecting user feedback helps you identify areas for improvement and new features that you may have overlooked during the MVP development stage. Implementing user feedback can also help you build a product that better meets user needs and delivers value. By iterating based on user feedback, you can improve your product and increase user satisfaction, ultimately leading to the long-term success of your SaaS startup.

Once you have launched your product, it is essential to gather feedback from your end-users to ensure that your product is on the right track. You can ask them the following questions to understand their perspective:

  • What is the primary advantage you have gained from using [product name]?
  • Are there any features that you think are missing in [product name]?
  • How can we enhance our product or service to better fulfill your requirements?


Developing an MVP for a SaaS startup can be challenging, but by following these practical tips, startups can increase their chances of success. From planning the sales strategy to building the right team, each step is crucial to developing a successful product.

Finally, it’s important to remember that building a successful SaaS startup is an iterative process. It’s important to adjust and analyze feedback from users to improve the product over time. By prioritizing user experience, scalability, and the right team, startups can create a product that not only meets the needs of their target audience but also sets them up for long-term success. It’s important to remain agile and adaptable throughout the development process, as the market and user needs can change quickly. 

By consistently evaluating and iterating on the product, startups can stay ahead of the competition and continue to meet the evolving needs of their users. With dedication, hard work, and a focus on delivering value to the end-user, SaaS startups can turn their MVP into a thriving and successful business.

Updated 23rd May 2023