Minimal Viable Product (MVP) is a product development strategy that emphasizes creating and testing the core features and functionalities of a product. It is a way to validate a product concept and assess its potential success before investing significant time and resources into its development. The ultimate goal is to build just enough to satisfy the early adopters, demonstrate the product’s value proposition and secure additional investment for further development.
However, building an MVP comes with its own set of costs that should be considered before starting the development process. This blog post will provide a comprehensive breakdown of the costs associated with building an MVP. Additionally, it’ll discuss the average cost of developing MVP and hiring an MVP app development company, factors affecting the cost and reasons why you should consider budgeting for the development process.
Factors Affecting the Cost of MVP development
Before you start with the development process, note that the cost of developing MVP can vary greatly based on different factors including:
- Complexity of the Product:
A more complex project requires more features, design elements, and functionalities which can ultimately lead to an increased budget.
- Technology Used:
The use of more advanced technology and tools, such as Artificial Intelligence (AI) and Machine Learning (ML) will require more expertise and resources, leading to a higher cost. Additionally, note that the licensing fees for proprietary software can also contribute to the cost.
- Team Size and Expertise Required:
The number of developers, designers, and project managers required for MVP development projects are also a contributing factor in determining the cost. The more experienced and skilled the team members, the more it will cost to assemble and retain them.
- Location and Market rates:
The cost of development can vary depending on the location of the development team you work with and the market rates in the given area.
Average Cost of Developing an MVP
Developing an MVP requires a significant investment in time and resources. Here’s a breakdown of the costs associated with developing an MVP:
- Design and Development:
Design is one of the crucial aspects of MVP development. A good design can help to attract early adopters and make the MVP more user-friendly. The cost of design and UX may vary depending on the complexity of the project. However, on average, it can cost anywhere between $10000 to $30000. This cost will cover the development of wireframes, prototyping, and design of your MVPs interface (graphics, logos, fonts or any necessary or interactive elements).
Marketing is an important part of the MVP development project and can be a significant cost. This may include the cost of advertising, public relations, and any other marketing efforts. The cost of marketing your MVP can range anywhere between $5000-$15000 depending on the size and scope of the marketing campaign.
In addition to development and design costs, you’ll also need to consider the infrastructure costs. This includes the cost of hosting, servers, and any necessary hardware or software required to support MVP. The cost of this may range between $5000 to $20000, depending upon the complexity of the infrastructure required.
Finally, it’s important to consider the ongoing maintenance costs associated with developing an MVP. This includes the cost of making updates and improvements, providing customer support, and more. This can cost you around $5000 to $20000 on a yearly basis.
Cost Associated with Hiring MVP Developers
When it comes to developing a minimum viable product (MVP), it’s essential to have a team of experienced and skilled developers to ensure that the product meets your expectations. Hiring MVP developers is one of the crucial decisions you will make in your product development venture, as it directly affects the success of your project. Here’s an insight into hiring different types of development teams, including freelancers, in-house and outsourced.
Freelance MVP developers offer the most cost-effective solution for developing MVP. Hiring a freelancer for your development project can be a good option, especially if you have a tight budget and are looking for short-term support. The average hourly rate for a freelance developer ranges from $35 to $75 per hour, with the average cost of an MVP development project costing anywhere between $5000 to $20,000.
The primary advantage of hiring a freelancer is the lower cost compared to hiring an in-house developer. Additionally, freelancers are highly skilled and experienced in developing MVPs, making them excellent options for small businesses and startups. However, it’s important to note that hiring a freelancer comes with its own set of challenges, like a lack of accountability and stability.
In-house MVP Developers
Hiring in-house developers can be a great option for businesses that want to maintain complete control over the development process and ensure that their product meets their expectations. In-house developers also provide a level of stability and reliability that freelancers may not offer. However, note that hiring in-house MVP developers is typically more expensive compared to hiring freelancers. The average salary for an in-house MVP developer (including benefits and training) ranges from $70,000 to $120,000 per year.
The primary advantage of hiring in-house MVP developers is the level of control and reliability they provide. Additionally, in-house developers are more familiar with the company’s development process and are better equipped with resources to make decisions that benefit the company in the long run. However, the cost of hiring in-house MVP developers is significantly higher compared to hiring freelancers and it may not be feasible for small businesses and startups.
Outsourcing MVP App Development
Outsourcing MVP App development is a great option for companies that want to minimize costs and ensure the development process runs smoothly. An MVP mobile app development services company will have a team of experienced and skilled developers specializing in developing MVPs. The average cost of outsourcing MVP development ranges from $10,000 to $50,000 depending on the complexity of the project.
The primary advantage of outsourcing MVP development is the cost savings compared to hiring in-house developers. Additionally, outsourcing companies have a team of experienced developers who are familiar with the development process and can provide valuable insights and recommendations. However, outsourcing MVP development also comes with its own set of challenges, including communication barriers, cultural differences, and quality control.
Why Should You Consider Budgeting for MVP Development?
The process of developing an MVP app can be complex and challenging, especially if you’re working with limited resources. One of the key ways to help mitigate the risks involved in MVP development is by setting a budget. Having a budget in place can help you stay on track, avoid unexpected costs and make the best use of your resources.
- Helps determine the scope of work
A budget acts as a blueprint for the MVP development process. It outlines the scope of work, resources required, and the timeline for completion. With a budget, the team can focus on the core features of the products that are essential for testing the market rather than wasting time and resources on unnecessary features.
- Facilitates better resource allocation
A budget helps to determine the resources required for the MVP development process. This includes the number of team members required, the technology used, and the cost of hiring third-party services. Having a budget in place enables the team to allocate resources more effectively, ensuring that all tasks are completed within the designated timeframe and budget.
- Avoids over-engineering
Having a budget helps in avoiding over-engineering, which occurs when a project goes over the budget and beyond its intended scope. Over-engineering can lead to a delay in the project completion and the final products may not meet the original goals and objectives. By setting a budget, you ensure that you are focused on delivering the MVP avoiding any unnecessary expenditures.
- Aids in forecasting
A budget provides an accurate estimate of resources and the costs required to complete the MVP development. This information can then be used to forecast the future costs and determine whether the project is financially viable.
In short, building an MVP can be a cost-effective way to validate your business idea, attract investors and launch your product. However, the costs associated with building an MVP can vary greatly depending on your project’s scope, platform, and development team. It’s important to carefully consider the various costs involved, hire MVP developers, who are well-versed with their job, and plan everything accordingly to ensure your MVP is built within the allocated budget. From product design and development to hosting and marketing, every expense should be thoroughly researched and accounted for. By doing so, you can avoid any unpleasant surprises and ensure the success of your MVP. Remember, an MVP is just the beginning of your journey and a well-planned and executed MVP can set you on the path towards building a successful and profitable business.
Amelia Swank is a senior web and app developer with over 8 years of experience. Currently with SunTec India, she specializes in the domain of digital solutions, specifically WordPress development, MVP Development Services, Shopify development, Magento development. Her passion for technology fuels her writing, aimed at spreading insights to all. Amelia closely follows the latest IT advances to share her expertise with those interested in the field.