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.
It is a crucial part of the development process as it helps businesses to validate their product ideas and test the market before investing significant time and amount into a full-fledged product.
This blog will discuss MVP development cost for enterprises depending on several key factors.
Table of Contents
Do You Really Need an MVP?
As described above, creating 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. Developing 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.
Let’s look at some stats. Well, we have a solution
- According to Embroker study, Up to 90% of startups fail. 10% of them gave up in the first year, and up to 70% would not make it from the second to the fifth year.
Well, we have a solution. Businesses can avoid pitfalls and complete the project by developing an MVP.
There are various benefits of MVP application development that you can read in our Step-by-Step MVP Development Guide.
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.
A product’s fundamental functionality aids in determining whether it has the ability to generate revenue. You can use it to test with early adopters, solicit feedback or make a pitch.
How Much Does it Cost to Develop an MVP and What Factors Affect it?
When it comes to MVP costs, you will get different cost estimates from every app development firm. It happens because there are diverse factors that determine the MVP price. Let us discuss some of these factors:
1. Defining the Scope of MVP Development
One key factor affecting the MVP cost 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. You can take the assistance of a reliable mobile app development company to develop an MVP.
2. 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 build an 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.
3. Development Team
The four basic categories of development teams are in-house, freelance, local, and outsourced.
In-house team for MVP development
When the MVP is created internally, a number of costs are included in the mobile app development process. These MVP app development cost include the salary you pay your developers, the costs of setting up the IT infrastructure, the cost of the hardware and software, the price of technology training, any benefits you offer, and administrative costs.
You can save money by selecting a freelancer’s MVP app development services. However, there is a problem with their degree of credibility, which is why many business owners don’t believe in freelancers’ work. For your business, a communication gap might occasionally be a concern.
Businesses that are unable to build an internal team but desire the advantages of working closely with their team may also consider hiring local teams. They can speak with a nearby app development firm that develops mobile minimum viable products.
Even while you save money in this scenario on costs like infrastructure and hardware/software, it will still cost you more than outsourcing your job to an offshore team of app developers.
Outsourcing MVP development
MVP outsourcing is the most popular choice among all due to its viability. According to Fortunly, 78% of business owners are satisfied with their outsourcing partners.
While there are various types of outsourcing, many businesses favor those that can hire a specialist to build MVP, such as an offshore product development company.
4. Development Time
The duration of the development process is another factor that can affect the cost of MVP development. A longer development time will increase the cost as it will require more resources, such as developer time and project management.
How much time MVP development takes is also a prime factor that influences the MVP app development cost. In general, it takes 1-3 months to develop 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.
5. Location of the Development Team
The size and location of the development team can also affect the cost of MVP development. The location of the development team can also affect the cost, as the cost of living and wages can vary significantly by region. For example, developing an MVP in North America will be more expensive than developing it in India or Eastern Europe.
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.
|Location||Hourly Costs (Approx)|
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.
6. 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 app, 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.
7. 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 MVP for apps 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.
8. Technology Used
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 cost to develop MVP.
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.
You need feedback if you sincerely want to see how people respond to your product. Only an MVP can accomplish this.
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 2–4 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 MVP development cost 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.
Turn Your Business Idea Into Reality With Our MVP Development Services
With notable results, SparxIT offers specialized solutions for both startups and established organizations worldwide. We are proud of our work because using and visualizing our strategy will increase your chances of getting the investment.
Don’t let your business idea remain just an idea. Bring it to life today!
Let our mobile application developers help you turn your vision into a reality with our MVP development services. Our team of experts will work with you to understand your business goals, conduct market research, create a customized MVP to help you test and validate your product in the market.
Contact us today to schedule a free consultation and get a quote for your project.
Frequently Asked Questions
Why do I need to build an MVP?
1. To validate your idea
Test your product in the market, and gather user feedback.
2. Save time and money
Market your product quickly and at a lower cost.
3. Attract investors
MVP can used to attract investors & gaining traction in the market.
4. Learn from the market
It is used to gather data on user behavior.
5. Improve your product:
Identify areas where your product requires improvement.
How much does an MVP cost?
The MVP development cost can range from $15,000 or more as a rough estimate.
It’s important to note that these costs are approximate and can vary widely depending on the complexity of the MVP, the development team, and other factors.
How much time does it take to develop an MVP?
On average, developing an MVP can take anywhere from 2 to 6 months.
A simple MVP could be developed in as little as 2–3 months, while a complex MVP with many features can take up to 4–6 months.
It’s always advisable to work with a development team that can give you a realistic estimate of the development time for your MVP based on their experience and the specifics of your project.
How to select an MVP app development company?
- Look for experience
- Review the company’s portfolio
- Understand the company’s development process
- Check communication and collaboration
- Evaluate the company’s technical expertise
- Understand the company’s cost & timeline
- Check online reviews and ask for references
- Consider the company’s after-sales support