Things to Know While Building an MVP : The Cost Book

Are you building a complex product for the consumers? Do you have the certainty of it being a success? If not, then why are you holding yourself back from developing a minimum viable product? Let's talk about the viability of MVP web development.

Oh well, we have already documented whether it's good or bad. You can read about it here. 

With 2.9 million hosts on AirBnB present in 100,000 cities (2020), Airbnb became a success by using the traditional approach of MVP. Do you envision being as thriving as them? 

On learning the exclusive advantages of it, it is time to dive into the cost of MVP development. We absolutely understand that cost is an ultimate factor in deciding a function. Henceforth, this blog will extensively talk about it. 

The Process of Building an MVP

1. Product Description

At the very beginning of your MVP stage, you should identify a requirement as to why the product should endure. To ensure clarity, conduct surveys, because the more information you have, the more are the chances of success. Also, identify and evaluate your competitors’ offerings.

2. Product Classification

You must learn to align your goals in the MVP development process. You have to comprehend what the company wants from the consumer. The user journey is divided into three parts: the user, user actions, and story endings. You should unquestionably define the key features with a set of blueprints and decide how long should it take to release an MVP. Link them to the ultimate goal.

3. Product Implementation

Features are solid, so start communicating about what other essences you want to add at different points. Using your MVP web or app development statements from the previous step, conclude what features you want to build. The central version will model the potential creativity.

4. Product Launch

You can launch the MVP in multiple ways. But, remember that an MVP is not inferior in quality and it needs to fulfill your customer’s needs. Therefore, it must be accessible to use, appealing, and suitable for your users.

5. Product Feedback

Feedback from consumers enables you to review your past research and assess it. You will find out what amendments your product needs and analyze the cost of the MVP development and recreation. The response of the consumer decides your expertise and how you are willing to sell your commodity.

How Much Does it Cost to Make an MVP for App or Website?

To deliver an exceptional product, the owner of the apps and websites must decide on developers sharply, as the choice of developers significantly shapes the development process. Read why we suggest Flutter for MVP development

Let’s have a look at all the options you have.

Option #1: Hiring A Freelancer

This way to get a project started is fast, affordable, and easy. Many freelance developers prefer working with entrepreneurs for software development MVPs and prototypes.

You can find several freelance platforms to discover developers that can meet all your needs, such as freelancer.com or upwork.com. Write down a list of features, develop some mockups of how you want the site to look, along with the technology that will best fit your product.

Obviously, the developer will have his own opinions on technology and tools, so make sure you know the right and wrong. 

Pros: Developers are agile and swift, and you'll know the work is being done by the person you've hired and the results will be upfront (not the case in outsourcing or agency scenarios).

Cons: Freelance developers can have commitment issues. They can leave the project if anything goes wrong and nobody will be accountable for it. You cannot afford to take that big of a risk in any MVP stage.

Related Post - Top reasons to choose an offshore company over freelancers

Another big disadvantage of this is coordination and communication as you'll have to manage the project all by yourself. 

Cost: A good freelancer will charge you by the hour (which is, of course, an added benefit). The cost of MVP development that a technically advanced developer will charge on average is $12,000-$20,000. Don't skip getting proposals from a few developers, you must necessarily like to compare the cost.

Option #2: Going In-House

In-house development lets the team be fully involved in the project, which makes it the first choice of many CXOs.

In an MVP development process, the in-house developers provide transparent relations and clear communication. Regardless, the quality is your liability. Your developers are more motivated on the success of the company, though.

Pros: With an in-house team, the work done can be immediately checked and improvised. Also, having an in house team is a long term solution and association which reduces the costs of future projects.

Cons: The biggest drawback is considerably higher prices. When you start with a small budget, that may be a challenge. You must use an MVP cost calculator to analyze if this is a good option or not.

Cost: If you hire a full stack developer with a designer, tester, and project manager, then the cost of MVP development would be around $2500 per month.

Option #3: Local App/Web Development Companies

If you are a fully funded start-up with a limited budget, this model may not be suitable for you. Hiring an MVP app/website development agency can turn out to be an expensive choice.

Pros: The price includes the cost of an entire development team. You will have a dedicated project manager, tester, designer, and other technical personnel. Not having to be a part of the project intensively is another advantage. The companies manage everything all by themself.

Cons: As mentioned above, the cost is the primary obstacle. Apart from this, there can be communication and expectancy issues.

Cost: The prices for a consultant totals about $400 an hour. Considering a project completion may take up to 6 months, the cost of MVP development may shoot up to $96000 in total or $64,000 per month. If you have the budget, then this is the best option without a doubt.

Option #4: Outsourcing App or Website Development

To several start-ups, with limited resources, outsourcing is a common alternative. It is a go-to option as it is much cheaper to hire any other local agency in comparison to other models.

Pros: It is cost-effective and opens up a pool of talented and skilled MVP app and website developers. Outsourcing accelerates growth as it fulfills needs and mitigates risks. 

Cons: It involves two key obstacles which are — developing trust & developing a team. Those two problems can be, however, quickly solved. When recruiting prospective firms, make sure you have thoroughly investigated them.

Cost: The average price is $40 per hour. This means if you hire a dedicated development team of a minimum four-person, (which is equivalent to setting up an ODC) the team will cost $160 per hour. 

So, on average, you can assume that you will have to pay up to $25, 000 per month to build an MVP app.

What are the MVP Stages?

In general, the cost of MVP development includes costs of design, coding, project management, and testing. Some projects also need maintenance to be involved. Let us take a look at the potential costs:

• To make a prototype UX/UI, validate an idea, create a pitch of an app for investors will cost $5, 000 – $10, 000.
• An average price to create an app is from $15, 000 to $50, 000, depending on the complexity of the project,
• The price for landing page development and project promotion is about $2, 000.

In the end, you have to analyze what model and functionalities are necessary to your product keeping the cost and quality in mind for your software development MVP. 

Consequently, if you are enthusiastic about building worthwhile products, which are preferred by your customers, connect with us. We will provide you with a free estimation and consultation on the MVP website and app development.