A Minimum Viable Product in SaaS

As a SaaS developer who builds custom software, organizations come to us hoping to build a new product to tackle their vertical market. Assuming they’ve already done quality market research, we help them gather requirements and build a prototype. This proof of concept helps them determine if they should proceed. The next logical step is to develop a Minimum Viable Product (MVP), which is a basic product that (hopefully) contains enough features to satisfy initial customers. It aims to test the market, gather feedback, and validate the core concept with minimal development effort. The challenge is knowing which features are needed to satisfy the market. If the customer guesses wrong or if the developer (us) fails to deliver working software, it’s a recipe for disaster. Developing an MVP is often not enough – – you have to deliver a minimum valuable product. Let’s explore the advantages and disadvantages of producing a Minimum Viable Product in SaaS.

Advantages of Releasing a Minimum Viable Product in SaaS


Developing a minimum viable product reduces initial development costs and investment.

Time to Market

A quick launch allows rapid market entry. Modern software development tools enable building fairly sophisticated applications with APIs, strong user interfaces, and rich functionality.

User Feedback

MVPs enable early user interaction. Collecting feedback streamlines refining the product to meet expectations.

Risk Mitigation

Clearly a minimum viable product reduces the risk of developing a full-fledged product that doesn’t align to market needs.

Disadvantages of Developing a Minimum Viable Product in SaaS

Limited Feature Set

MVPs often lack a complete feature set, potentially leading to disappointing users.

Brand Image Impact

A weak initial release might impact the brand’s perception and hurt user confidence.


An MVP may provide a shorter-term competitive advantage but struggle against more established, complete alternatives.

Resource Demand

The strategy is to provide continuous updates and improvements based on user feedback, which requires ongoing resources.

A Minimum Viable Product in SaaS

While an MVP allows for entering a market quickly and gathering feedback, it’s critical to understand its limitations. A minimum viable product SaaS strategy can be advantageous for startups aiming to validate ideas. Organizations should also consider the potential drawbacks to ensure a balanced approach between development and user satisfaction. Simply stated, you probably won’t get two bites of the apple. Develop a minimum valuable product instead!

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