TSUW - Build Less, Learn Faster: MVP vs. V1 Feature Strategy for SaaS

Hello again, software-minded builder. Welcome back to The Startup Wagon, where today’s issue tackles a problem every SaaS founder runs into sooner than expected: deciding what must ship to validate your product versus what can wait until users actually depend on it. In software, feature creep is expensive, focus is fragile, and the wrong prioritization can slow learning or sink momentum entirely.

In SaaS, your product is never “done.” But the difference between an MVP and V1 is critical. Treat them the same, and you’ll either overbuild too early or underdeliver when users start relying on your software.

The key is understanding what each stage is for—and aligning features to that purpose.

1. MVP in SaaS Exists to Validate One Core Workflow

A SaaS MVP is not a smaller version of the final platform. It’s a signal test.

The MVP should prove:

• Users can complete the core workflow

• The problem is painful enough to care

• The solution produces a clear outcome

• Value appears quickly after signup

For SaaS, this usually means:

• One primary user role

• One main job-to-be-done

• One end-to-end workflow

If your MVP supports multiple roles, dashboards, permissions, and edge cases, it’s already past MVP.

2. Define the “First Successful Session”

For SaaS startups, feature prioritization becomes clearer when you define what a successful first session looks like.

Ask:

• What action means the user “got it”?

• What data must exist for value to appear?

• What output proves success?

Examples:

• A project is created

• A report is generated

• An automation runs

• A message is sent

• A task is completed faster than before

MVP features should exist only to get users to that moment. Anything else waits.

3. MVP Features = Functional, Not Scalable

SaaS founders often overbuild backend systems too early.

In MVP, it’s okay to:

• Handle edge cases manually

• Hardcode configurations

• Skip advanced permissions

• Limit integrations

• Support one pricing tier

• Rely on internal tools for ops

If a feature doesn’t affect whether users experience value, it likely belongs in V1.

The MVP answers “should we build this?”
V1 answers “can we run this reliably?”

4. V1 Is When SaaS Becomes Trustworthy

Once users return regularly, expectations shift.

V1 features focus on:

• Reliability and uptime

• Faster performance

• Clear onboarding

• Error handling

• Basic security and permissions

• Cleaner data models

• Billing and subscription logic

This is when your SaaS transitions from interesting to dependable.

Users don’t always request these improvements—but they absolutely notice when they’re missing.

5. Use a SaaS-Specific Feature Filter

Before adding a feature, ask:

Does this improve activation?

• Faster setup

• Fewer steps

• Clearer guidance

Does this improve retention?

• Core workflow speed

• Reduced friction

• Better feedback loops

Does this unlock revenue?

• Paid limits

• Usage tracking

• Upgrade triggers

If a feature doesn’t clearly impact one of these, it’s likely not MVP—or even V1.

6. Let Usage Data Decide What Moves Forward

In SaaS, behavior is your best product manager.

Watch for:

• Where users drop off during onboarding

• Features used repeatedly

• Actions that correlate with retention

• Manual workarounds users create

• Support tickets that repeat

When patterns emerge, they point directly to V1 priorities. Loud feature requests without usage patterns usually don’t.

7. Beware SaaS-Specific Feature Traps

Common mistakes SaaS startups make too early:

• Over-engineered role permissions

• Complex dashboards

• Full analytics suites

• Marketplace-style integrations

• Custom workflows for edge users

These features matter—but only after the core workflow is proven and stable.

8. V1 Still Isn’t “Everything”

V1 is not the finish line—it’s the first reliable version.

Strong SaaS teams:

• Keep V1 tight

• Improve core workflows first

• Delay power-user features

• Maintain a clear “later” list

• Continue shipping in small increments

Momentum comes from consistency, not completeness.

Final Takeaway

In SaaS startups, feature prioritization is about respecting timing. MVPs exist to validate demand and behavior. V1 exists to earn trust and support repeat usage. When founders clearly separate those goals, product decisions become easier, development speeds up, and learning stays sharp.

Ship the signal first.
Then ship the system.

That’s All For Today

I hope you enjoyed today’s issue of The Wealth Wagon. If you have any questions regarding today’s issue or future issues feel free to reply to this email and we will get back to you as soon as possible. Come back tomorrow for another great post. I hope to see you. 🤙

— Ryan Rincon, CEO and Founder at The Wealth Wagon Inc.

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