1.3 How to Build an MVP on a Shoestring Budget

A Minimum Viable Product (MVP) is the simplest version of your SaaS that solves a key problem for users. By focusing on the core functionality, you can validate your idea quickly and gather real feedback—without investing too much time or money. Building an MVP on a shoestring budget requires smart use of tools, efficient development strategies, and a clear focus on solving your target audience’s most pressing problem.

Here’s how you can create an MVP for your SaaS without breaking the bank, with real-world examples to guide you.


1. Focus on Your Core Feature

Your MVP should address one core problem and deliver the simplest solution. Avoid feature bloat at this stage—focus only on the feature that provides the most value to your users.

Example:

  • Instagram: Instagram’s initial MVP focused solely on photo sharing with simple filters. The app didn’t have messaging, stories, or video features—it solved a single problem and did it well.
  • Dropbox: Dropbox’s MVP was designed to demonstrate seamless file syncing and sharing. They didn’t start with an elaborate platform, just the core functionality that solved a common problem for users.

How to Identify Your Core Feature:

  • What problem are you solving? Focus on the most pressing issue your target users face.
  • What feature will deliver the quickest value? Build only what is necessary to prove that your product solves the problem.
MVP StrategyExample
InstagramFocused on photo-sharing as its core feature.
DropboxSimplified file syncing and sharing.

2. Leverage No-Code or Low-Code Tools

You don’t need to hire expensive developers to create an MVP. With no-code and low-code platforms, you can build a functional SaaS without writing a single line of code.

Example:

  • Bubble allows you to create complex web applications with user authentication, databases, and workflows—all without coding knowledge. Many successful SaaS products have been launched using Bubble as an MVP.
  • GlideApps lets you build a mobile app from a Google Sheet. If your MVP is based around user-generated content or data management, GlideApps is a fast, inexpensive way to create a usable product.

Popular No-Code/Low-Code Tools:

  • Bubble: Great for web-based SaaS applications.
  • GlideApps: Best for simple mobile apps.
  • Webflow: Ideal for building responsive websites.
  • Airtable: Powerful for data-driven applications.
No-Code ToolBest For
BubbleComplex web apps without coding.
GlideAppsMobile apps using Google Sheets as a backend.
WebflowBuilding responsive websites.

3. Outsource Development Wisely

If your MVP requires custom code, consider outsourcing development to freelancers or agencies. This can be a cost-effective way to build your product without hiring a full-time team.

Example:

  • Buffer started by outsourcing the development of their MVP to a freelance developer. This allowed them to get the product off the ground quickly and affordably, while the founder focused on marketing and customer feedback.
  • Fiverr and Upwork provide access to thousands of skilled developers worldwide who can build MVPs at competitive rates. Buffer spent just $20 to develop their initial MVP.

Tips for Outsourcing:

  • Define a clear scope: Be very specific about the core feature you want the freelancer to build.
  • Use fixed-price contracts: This ensures you don’t overspend if the project takes longer than expected.
  • Test with a small project first: Start by having the freelancer build a simple prototype before committing to a larger project.
Outsourcing PlatformUsage
UpworkHire freelance developers for SaaS projects.
FiverrFind affordable freelancers for small development tasks.

4. Use Free or Low-Cost Tools for Infrastructure

Running your SaaS in the early stages doesn’t have to be expensive. Many platforms offer free tiers or low-cost solutions for startups, allowing you to reduce costs during the MVP phase.

Example:

  • Google Cloud Free Tier offers free hosting and cloud storage, which is perfect for early-stage MVPs that don’t require heavy infrastructure.
  • MailChimp provides free email marketing tools for up to 2,000 subscribers. This makes it easy to keep your MVP users engaged and gather feedback without paying for expensive marketing tools.

Recommended Free/Low-Cost Tools:

  • Google Cloud Free Tier: Free hosting and basic cloud infrastructure.
  • MailChimp: Free email marketing for up to 2,000 contacts.
  • Stripe: Only charges for transactions, making it a great low-cost payment solution.
  • Trello: Free project management tool to keep track of development progress.
ToolUsage
Google Cloud Free TierFree hosting and storage for your MVP.
MailChimpFree email marketing for your first 2,000 users.
StripePayment processing with no upfront fees.

5. Launch Quickly and Gather Feedback

Your MVP doesn’t have to be perfect—it just needs to solve the core problem for early users. The faster you launch, the sooner you can start gathering valuable feedback and iterating on your product.

Example:

  • Zappos: Before Zappos became the online shoe retail giant, its founder tested demand by creating a simple website with shoe photos. When customers placed an order, he bought the shoes from local stores and shipped them to customers. This allowed him to validate the idea without building a complex infrastructure.
  • Dropbox’s MVP Video: Instead of building a fully-functional product, Dropbox’s founder created a demo video explaining how the product would work. This approach attracted thousands of beta users and validated the idea without significant upfront investment.

How to Gather Feedback:

  • Invite a small group of beta testers: Offer early access in exchange for feedback.
  • Create a feedback loop: Use Google Forms or Typeform to gather structured feedback.
  • Iterate quickly: Make improvements based on the feedback and launch updates frequently.
Launch StrategyAction
Beta TestersInvite early users to test your MVP.
Collect FeedbackUse surveys or forms to gather user insights.
Iterate QuicklyImprove your product based on feedback.

6. Avoid Feature Creep

When building your MVP, it’s easy to get carried away with adding extra features. However, feature creep can delay your launch and increase costs. Stay focused on delivering the simplest version of your product that solves the problem you set out to address.

Example:

  • Groupon’s Early MVP was a simple blog where they posted daily deals for local businesses. Users could participate by emailing the blog, and the team manually fulfilled each order. This was a bare-bones MVP that validated demand before the platform became more complex.

How to Stay Focused:

  • Limit the scope: Create a list of essential features and stick to it.
  • Use feedback to guide development: Only add new features if users specifically request them.
  • Set a strict launch deadline: Aim to launch as soon as the core feature is working well.
How to Avoid Feature CreepAction
Limit the scopeFocus on the most important features only.
Stick to user feedbackPrioritize adding features users ask for.
Set a launch deadlineAvoid delays by committing to a launch date.

Key Takeaways:

  • Start small: Build only the core feature that solves your users’ most pressing problem.
  • Leverage no-code tools: Use platforms like Bubble or GlideApps to build quickly without developers.
  • Outsource wisely: If you need coding, use freelance platforms like Upwork to keep costs down.
  • Use free tools: Platforms like Google Cloud and MailChimp provide low-cost infrastructure for early-stage startups.
  • Launch fast and iterate: Get feedback from beta users and improve your MVP quickly.

Final Thought:

Building an MVP on a shoestring budget is all about being resourceful and focused. By honing in on your core feature, leveraging affordable tools, and launching quickly, you can validate your SaaS idea without spending a fortune. The key is to start simple, gather feedback, and improve your product iteratively based on user insights.