💎 How service businesses can be beautiful MVPs

Building a successful tech business is tough. It starts with finding a problem that’s not just worth solving, but demanding enough to justify the pursuit. Then comes the challenge of creating a great product. This requires not just months of your time, but a substantial financial investment. As you pour resources into development, aiming to build enough momentum for a strong launch, you might start wondering—can’t there be a better way?

Yes, there can. In many cases, you can test the waters with a simple prototype and some compelling sales collateral. But for certain tech ventures and market conditions, a service-based MVP offers a unique advantage. It allows for a lower barrier to entry, paying customers from day one, and the ability to automate processes for those early adopters. Let’s dive into how this approach.

The Right Market Conditions

Let’s imagine you're running a B2B SaaS company, serving either SMBs or enterprise customers. You’ve already got a solid product, but you’re ready to diversify. Smart move. But now comes the big question: “What’s the next product?”

If you’re eyeing an adjacent or existing market that’s driven by regulatory or compliance needs, you might be staring at a golden opportunity. These markets often involve extensive auditing and reporting—tasks that are not only complex but also stuck in outdated, manual processes. Think about it: Should you need to specialize in payroll administrator to manage your company’s payroll? Become an expert in grants to secure a business loan? A KYC specialist to report on fraud? A technical writer for a repetitive regulatory report?

Chances are, there’s a business out there thriving solely by throwing manpower at these manual processes. That’s where the opportunity lies. In markets burdened by heavy, labor-intensive workflows, you can step in.

Your advantage? You can start by testing your ability to scale that business without needing to dive straight into heavy tech development. In fact, you might not even need advanced technology to begin.

Service Businesses Don’t Scale, But Tech Does

Imagine needing just one technical writer to close your first 20 customers. With that in place, you could start onboarding clients and growing a new business line. That’s a powerful position to be in, and your initial customers will likely embrace it—especially if you offer them a drastically reduced price. You’d be amazed at how much business you can capture, not by having a completely different product, but by offering a better price.

So, offer your service at cost. Let’s say you invest $150,000 in hiring a technical writer who can service 15 clients. Typically, the market charges around $20,000 for this service. If you offer it at 50% off—$10,000—you’ll break even.

Do it. With that first logo under your belt, you’re ready to onboard more.

As you build your client base, the technology transformation becomes less risky. Not only do you have revenue as a proof point, but you’re also developing a deep understanding of your customers and the operations team delivering the service. You’ll gain intimate knowledge of the high-effort, high-value problems that need solving.

This is the beauty of a tech company. You can start a service business using manual methods, effectively taking over an internal function that’s a headache for companies to handle themselves. Then, you leverage your technical expertise to transform that service into a product-led business.

Otherwise known as “AI” 😉 

MVPs don’t have to drain your time and resources. I’ve personally built four 7-figure revenue-generating businesses using this exact method. By targeting the right markets and launching a service-based approach to onboard customers from day one, you can build a diversified and resilient company with multiple business lines—all while minimizing risk.

If you’d like to chat more about deploying these strategies, let’s connect and discuss how we can collaborate to achieve your company’s success.

Onwards,