Are you a business enthusiast who wants to be part of a thriving app industry? Suppose you finally got an app idea, which, according to some research, will generate million-dollar revenue in the coming years, so you decided it is time to finally begin its development.
So, in this competitive era, how can you decide whether your app idea will be successful in the market or not? That’s why you first need to plan a budget for building a minimum viable product or MVP.
Minimum Viable Product (MVP) is a launch-ready version of the product with core features, which is used in the market to find the scope of a product in the market.
The cost of MVP development for enterprises depends on several key factors that we will discuss in this blog.
Do You Really Need an MVP?
As described above, building an MVP is a perfect strategy as it costs much less than building a full-fledged application.
However, now the question arises, does every app idea need an MVP? Well, the answer would be, yes, building an MVP does help you validate your idea in the market. It takes less than the actual cost and time of developing the whole app and reduces the risk of app failure.
There are various benefits of MVP development that you can read in our Step-by-Step Guide to Build a Minimum Viable Product (MVP)
Depending on any reason you decide to create an MVP, you will end with three possible results as given below:
Suppose you launch your MVP in the market, and it passes all the benchmarks set to define the success of MVP in the market. In that case, it is safe to say the idea is valid and fit for the market. Therefore, you can keep adding features to your MVP and continue with the development.
In this case, you receive feedback from your audience concerning any issues or if they are not pleased with any feature. Therefore, your MVP is not a complete success, but you can use this data to improve and make it a market fit.
You might draw the data from your MVP and realize that your MVP app development idea is not feasible. In this case, it is considered a failure. However, having a failed MVP is better than spending all your money on developing the whole app only to see it die in the market.
Factors Affecting MVP Development Cost
Defining the Scope of MVP Development
One key factor affecting the price of MVP product development is the project scope. In this phase, you must define your competitors, target audience, market analysis, and business goals.
Try to find the simplest way possible to validate the app idea by specifying the limited requirements and less complicated design.
By defining the scope of MVP development beforehand, you can plan your budget more wisely.
Selecting a Platform: Web or Mobile?
It can be challenging for most businesses to select what platform should come first, web or mobile.
Both mobile and web apps are highly effective. For instance, it is evident that most of the traffic comes from mobile websites, and users prefer mobile apps to complete their day-to-day tasks. Therefore, you can choose to develop your MVP as per the budget and project requirements.
A mobile platform to deploy your app for iOS and Android will cost you more than the Web-first approach. Therefore, you can choose a cross-platform app development frameworks to create an app across all platforms (Android and iOS) with one code, reducing the development cost.
How much time MVP development takes is also a prime factor that influences the total cost. In general, it takes 1-3 months to build an MVP.
So, how does the development time affect the pricing? It is the hourly rate that developers charge for the time spent designing the MVP. This hourly rate changes based on several factors, such as geographical location and qualification level of developers.
Below we have mentioned the hourly rate of the IT services as per the different regions. However, keep in mind that these ranges may differ as per the minimum viable product development services requirements.
- Western Europe – $125–$200
- Eastern Europe – $25–$199
- North America – $195–$800
- South America – $30–$55
- Africa – $20-$99
- Australia – $100-$350
- Asia – $20-$300
Therefore, you must hire a leading MVP development company that can define the time to build the MVP, and that’s how you can save expenditure.
Project Design Complexity
The UI/UX design is an essential part of MVP development. Therefore, this factor plays a significant role in determining the MVP mobile app development cost.
For developing an MVP, a minimalistic design is enough to create a functional MVP. However, for any app idea where designing is the crucial factor in attracting the audience, a more complicated UI/UX design should be considered, including animations, 3D elements, and other custom features.
Proper planning, wireframing, and mockup are necessary to ensure a well-designed MVP development. Evaluating the cost of MVP design will help you identify its development cost.
MVP Features and Functionality
You can define the complexity of the MVP based on the app type. In this phase, you discover the app’s features and how complex they will be.
You can categorize your app in this section if it has standard features, including minimum screen transitions and core functions. The common examples in this category can be utility apps or quiz apps.
These apps can have slightly more features like data storage, payment portals, in-app purchases, geolocation, location tracking, etc. These apps can be specific to your business needs and might take more time for MVP development.
Some over-the-top platforms, enterprise-level apps, taxi service apps, or food delivery apps come under this category. The MVP of these apps might contain high-level complexity like video calls, live streaming, location tracking, or in-app purchases.
With defined app complexity, you can categorize your app and estimate the cost of building an MVP.
The technology you choose to build the MVP will have a significant role in defining the overall cost of development. Therefore, knowing different technologies and frameworks for building an MVP is essential.
There might also be third-party integration involved in MVP that might affect the overall development cost.
Therefore, hire an MVP app development company, so they can suggest suitable and affordable technology to use and help you manage the cost more efficiently.
Planning the Cost Ahead: Steps After MVP Launch
Marketing and Advertising Your MVP
For any app idea to be successful, it must reach out to the right set of audiences. Since MVP development cost is significantly lesser than the complete app, you can spend that amount on marketing and advertising your MVP.
Also, gaining early users will help you make the final app launch a huge success.
The cost of marketing the MVP will depend on the app type and budget. These strategies include social media posts, blog posts, email newsletters, and networking. Other than that, you can use advertisements like Facebook ads, Google Adwords, and Display Advertising for advertising the MVP, which might cost you an average of $2000-$5000 monthly.
Monitoring MVP Performance
Only developing an MVP does not guarantee your product success. MVP is an iterative process that is based on the build-measure-learn model. Therefore, you must gain feedback from the audience and utilize it to enhance your app’s performance.
Therefore, align proper planning to effectively gather the feedback, such as in-app surveys, interviews, landing pages, etc. The strategies you choose will also impact the cost of MVP development.
MVP maintenance is a necessary parameter to consider while defining the cost. Ideally, you should save at least 20% of the initial budget for MVP development.
Various factors must be considered while determining the MVP maintenance cost, such as MVP complexity, team location, server expenses, etc. Also, include the charges of the company you hire to make the updates and various iterations.
Final Cost of MVP Development
On average, the total MVP development cost might vary from $15,000 or more, depending upon the complexity of the features.
The app’s complexity, with several features with advanced technology, will add further expense to MVP development.
Usually, an MVP should take 1-3 months to complete, including the entire lifecycle from project analysis to maintenance. Defining the project’s requirements and objectives to help validate ideas rapidly and ensure your MVP development finishes within the timelines is essential.
The project needs and budget requirements of different business sizes and industries might vary. Therefore, it is worth scheduling a meeting with the MVP development consultant.
If you know the proper parameters and how to strategize them wisely, estimating the cost of building an MVP is not as difficult as it seems.
MVP is a proven strategy for many successful apps of this date, such as Twitter, Buffer, Uber, Amazon, etc.
If you have an app idea and you are all set to initiate its development, then hiring a company offering MVP development services to hand over your project might be the best action.
The right company will help you launch your MVP with must-have features and save your time & budget.