August 27, 2021
Many of us cannot realize our ideas in life just because of some bad mistakes we made in the beginning. According to statistics, 42% of the apps cannot succeed because they didn’t meet the market requirements. To prevent these scenarios, it is best to start with MVP app development for startups.
When creating an application for your startup, the best way is to create an MVP application to test its feasibility and scope. There are numerous other reasons and benefits for building a minimum workable product highlighted in this article.
Most importantly, we take a comprehensive look at the MVP development costs and schedule guidelines to create a successful MVP. So, without further ado, let’s get started!
Before knowing the MVP app development cost, explain why an MVP (Minimum Viable Product) is necessary. These factors indicate the need to develop a Minimum Viable Product while starting your startup.
|Pandemic period||Companies worldwide are witnessing massive growth during the pandemic. For example, Amazon’s market capitalization has gained around $570 billion so far.
The concept of contactless delivery has also benefited several food delivery businesses. This is a clear sign that if you have an application idea, it is best to test it out now.
As some of the countries are still employing lockdown restrictions, people have more time to spare. It will be best to go for a time killer application like a game!
|Market Growth||The global mobile application market is expected to grow at a CAGR of 11.5% from 2020 to 2027.
Moreover, applications like eCommerce, Education, Gaming, Healthcare, and AI will show high growth in the future. Hence, it is better to realize an idea and build an MVP for this type of application.
|Long-term Profit||This is the most important factor in creating MVPs for startups. Here are a few things that make an MVP profitable:
Maybe you want to read: Top 5 mistakes make you fail in MVP development
The cost of MVP app development depends on many factors. Many founders assume that MVP app development costs depend on the type of technology used, but that’s not true.
When it comes to practical numbers, the price of building MVP for startups varies based on several factors such as team/developers model, location, hourly rate, level of experience.
Generally, the budget for an MVP comprises the cost of design, coding, project management, and testing. For example, making a UX / UI prototype, validating an idea, and making a pitching app costs up to $ 10,000. The average price to build an app is $ 15,000 to $ 50,000, depending on the project’s complexity.
Now, let’s dig deep into at factors.
If you want to create a fantastic product, it is crucial to choose the developers wisely. Here are some options you have:
You can use many platforms out there to help you find freelance developers that suit your needs. Some platforms to start with are freelancer.com, upwork.com, fiverr.com.
The problem that can happen with hiring freelance developers is their lack of commitment to the project. They can quickly go away when something goes wrong. It also means that you have to become a project manager and that all coordination and communication are your responsibility.
It is pretty challenging to deal with this problem. Still, if you want to hire freelance developers, my advice is to involve the locals. For a typical project, you should hire a full-time team. Let’s look at the fees of freelance software developers.
Hence, it takes you around $12,000 per month when hiring freelancers.
Sometimes people prefer to choosing in-house software development because of better transparent relations and clear communication.
In-house development team fully involved in the project. The quality is still your responsibility. Your developers are more motivated by the success of the application and company, though.
The main disadvantage of this option is a significantly higher cost. It could be an issue if you have a limited budget. When you hire full-time developers, you have to pay for sick leave costs and hiring costs, and many other expenses.
MVP development by an in-house team comes with a price of approximately $21,000.
Software outsourcing is nowadays a popular option for many startups. It’s like hiring a local agency, but you can save up to 50% of the cost.
Make sure you do a thorough research of potential agencies before hiring them. You can do this by referring to the reviews, company websites, and recent case studies or past clients.
Clutch and GoodFirms are great platforms for finding a reputable outsourcing company. These websites display ratings and reviews from previous customers to help you choose a productive and trustworthy offshore development center.
How much does MVP development cost with an outsourcing agency?
This is the backbone of the entire application development process. Below are some of the critical factors that affect the total cost of MVP development.
|Idea Validation||The concept of idea validation involves techniques to find out if the market needs your app and is willing to pay for it. MVP development helps you validate an idea for your startup.
In addition, by implementing the validation process of the idea, you can reduce the cost of the app development process. If your app idea shows no potential anyway, avoid wasting a lot of money.
|Discovery Phase||The discovery phase helps you estimate the cost of an app or an MVP development. During this phase, you can learn about: Competitors, market needs, target audience, business goals, and development costs.
When determining these aspects, you can plan well in case of investment. Hence, you can easily manage your entire project budget.
This technical part of the application also plays a vital role in estimating the cost of creating an MVP. Essentially, the technical part comprises the development and design of the application. It examines the functions contained in the application and their complexity. Complexity applications can be divided into three categories:
|Simple MVP||The simplest app has limited features like 3 or 4 screens, simple functions, login screen, messages, etc. Since these applications are less complex, they require less development time and therefore less money.
This app costs you about $10,000, with a development time of around 4-5 months—for example, a simple quiz game app.
|Medium Complexity Products||These products take a little longer than simple MVP (around 6-9 months to develop). Plus, the cost to build these apps is also higher, usually $10k-50k.
These apps contain additional features like data storage, payment portals, in-app purchases, geolocation, location tracking, etc.
|Highly Complex Applications||The last category is the application with master-level complexity. Most of these applications are car booking applications, food delivery applications, SAAS platforms, etc.
The complexity of these applications is very high, and they include time-consuming functions such as video calls, location tracking, data sync, etc. The databases are significant as well.
These apps cost you over $100,000 and take around a year to develop.
Another essential aspect that affects the cost of creating an MVP is the web or mobile application design. Since the application can have different types of user interfaces (UI), the price of the application design can vary depending on the operating system and what you want to include in the application. UX is also a crucial factor in deciding the cost of an MVP.
Applications can be divided into two types:
These applications have almost the same design on cross-platforms (Android and iOS) as there is one code for all. The main aspect of hybrid apps is that they have all the functionality of native apps and are inexpensive. One disadvantage of hybrid apps is that they can be a little slow to run.
Unlike hybrid applications, native apps have faster performance and are easy to maintain. The design of a native application is not the same on all platforms. Each application has its unique code for different platforms. This increases MVP development costs.
You can find out more: The app design process.
The total cost of an MVP design will be between $1,500 to $7,500 based on the location of the design, the team model, the complexity of the design, and the deadline.
MVP development time is proportional to budget, and budget is directly proportional to the number of features to be developed. But you should keep in mind that time is not on your side.
Hence, detailed requirements and project milestones help you validate ideas quickly because the faster you can adapt to changes, the more likely you will be successful and beat your competitors.
MVP development typically takes 1-2 months. It covers the complete development cycle from business analysis to product maintenance. The whole product development takes you 6-12 months.
Try to keep the time between updates as short as possible. Developers typically have 1-2 weeks iterations which is enough time to update and test the new features to launch an MVP in a good way.
InApps team focuses on early-stage MVP development for startups. Our goal is to develop successful products that enable founders to raise funds to grow rapidly in the target market. And then taking these products on a large scale with a strong market presence.
To this end, we conduct in-depth business research that includes an overview of the market, competitive landscape, and customer research.
If you are interested in developing valuable products that will significantly benefit your current and potential customers, we offer a free appraisal and advice on MVP development.
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