Stepping into any business is always as daunting as it sounds. But do you know that testing new business ideas can be done without having to spend large amounts of money?
SaaS has gained popularity and has become a lucrative business model in recent years. However, it’s comparatively harder for startups to get noticed by the right customers.
Nevertheless, MVP comes to the rescue. It is the approach of introducing any new product with basic functionality whilst building new features as the demand increases in the market.
What is Software-as-a-service (SaaS)?
SaaS is a software distribution model in which software is licensed on a subscription basis and made available to customers over the Internet. Customers can access the software, typically via a web browser, while the provider manages the infrastructure and security.
Now, let’s dig in to find out the benefits of MVP development for your SaaS startup:
1. Cost reduction and risk minimization
When starting a SaaS venture, one should keep in mind that it will be going to cost a ton of money, time, and effort to launch a large-scale web product or service. In addition, you can not ignore the fact that the venture could turn out to be a disaster if your vision is unable to hold a place in the market. Concerning this possibility, an MVP will cut down the risk that comes with the customer’s software development hence saving you a fortune.
When setting up MVP for SaaS, you’re going to spend on core functionality and will not spend a penny on the secondary feature like design, etc. The most applicatory feature is after receiving feedback from the customers you can improve or add features as per the requirement.
Hence, it is easy to alter and saves time. That in conclusion becomes more affordable since it provides you field to decide on spending money on the secondary efforts until you’re very sure.
By following this mechanism, you will be able to minimize the burn rate and expand your offerings based on the demands in the market.
2. Clear focus and flexibility
MVP is the best approach when it comes to value positioning. It allows you to address the core issue, and when doing so you will choose the right functionality that needs to be implemented. It possesses the ability to create a clear interface.
The mechanism starts with you building the basic functionality that is essential for the users. Keep in mind that the software must be accessible to use.
Here MVP gives you a field to test each feature at every step without having to make changes in the whole project.
It most importantly provides flexibility as per the customer changing needs and wants, so adjusting the MVP’s updates and functions is always easy. Using such updates with new demands in the market can be a game-changer for you.
3. Establishing connections with potential customers
The most promising and essential Saas-based MVP is to get feedback from the first users. By getting their honest and unbiased opinion regarding your product, you can identify issues and what features you will need to add, remove, or modify.
This way, you will be able to understand customer behavior and consecutively they will help you build a 100% customer-oriented solution that meets the specific needs of your target audience.
Besides, if you can carry a feedback system previously, it will create a buzz around your service resulting in creating a strong community.
Therefore, you have an upper hand to expand your customer case from the initial phase.
4. Gaining financial aid
When starting a new venture, you would require a ton load of funding to run a fairly profitable business for the long run. For the funding to come crashing in, you would require a lot of convincing the investors letting them know that there is a demand for your product/service in the market.
By doing so, the customers will be eager enough to invest in you more for better features. MVP allows quick customer feedback and prepares for solutions. You can also pitch in your MVP approach to potential customers with ease, convinced of the relevance of your offerings.
5. Quick launch
It is a known fact that building an MVP is a quick ride. By choosing the primary functionality in the initial phase, you will be able to target the specific issue and put that on the marketing for the right people.
Now let’s understand why launching fast is far-reaching. Firstly, it will help you scale your business by allowing you to explore marketing strategies and sales channels. In addition to this, MVP promotes effective planning by allotting release dates.
Regular delays in the business process due to mere procrastination may lead to a negative impact on your business.
The Bottom Line
We can surely bet that the development of MVP for SaaS especially in such a competitive market is beneficial for businesses in the long run.
It not only reduces the development cost but also narrows down the risk factor. Most importantly, it allows quick product launch while receiving feedback from early adopters.
Finally, MVP SaaS is all you need to start your journey of new venture.
Author Bio:
Aslam Hasan Khan is the CEO of Sofyrus Technologies, a software development company basd in US, UK, India, and Australia.
