As an entrepreneur who is starting a new business or looking for ways to figure out how to get started. There are a lot of important decisions and factors that need to be considered, one of which is the cost to develop a Minimum Viable Product or an MVP.
To continue further, let’s first know what is an MVP. An MVP is a product developed with just minimum features that can be used by the customers and provide feedback for further development.
The cost of developing an MVP depends on several factors, including the type of product, platform, team, design, and features included in it. However, the cost to develop an MVP might range between $5,000 to $50,000 per business requirement.
So, in this blog post, we will discuss various factors that impact the cost of developing an MVP for a startup and provide a few ways how to keep the costs down. So let’s get started.
Table of Contents
Major factors that affect the cost of developing an MVP
When starting a new business, entrepreneurs may face many challenges when trying to create an MVP. But one of the major challenges would be to figure out what product they should create and what’s the cost of MVP development. Other important considerations include the target market, the platform, and the team. However, a startup app development company can help you build an MVP quickly and efficiently without breaking the budget.
Here are some factors that affect the cost of developing an MVP. Let’s take a look at each of these factors one by one.
Type of product
In general, MVP development for a mobile application can turn out to be must costly that a web application. The reason includes web apps tend to be simpler, and have less functionality than mobile apps. Also, less testing is required due to the fact that there are fewer operating systems and device combinations to account for.
As a result, the cost of developing an MVP for a web app is typically lower than the cost of developing a mobile app MVP. However, the final price of MVP development will depend on the various features and unique functionality of the MVP.
Features and functionality
Undoubtedly, one of the critical factors impacting the cost of MVP development is the features included. If an MVP has more features and functionality the cost will automatically raise up. That’s because each additional feature requires its particular design, screens, development, and testing.
Moreover, features like social media integration, payments, and map integration can turn out to be costly. So, it’s always recommended to balance the need for customer feedback with the cost of MVP development.
One of the other factors that impact MVP cost development is the platform you choose to create your app on. If you want to develop an MVP for iOS it will generally be more expensive than Android. The reason is that iOS devices are more expensive to develop because of the need to purchase different licenses and devices used for them.
Also, if as a startup business, you want to develop a cross-platform app (an app that can be used on both iOS and Android. devices), the cost will be even higher, as you’ll need to develop it for both platforms simultaneously which will require more time, a team of experts, and quality analysts.
Undoubtedly, the team that is developing an MVP will impact the project’s cost for a few reasons. First and foremost, if there are more team members like developers, project managers, quality analysts, team leads, and more they will require more resources, including office space, equipment, and supplies. Also, a larger team usually means more salary disbursal, such as travel expenses and insurance.
However, there is no doubt, that a team with experts in many fields can also be more productive and efficient, which can offset some of the increased costs.
The experience of the team is another major factor when you are planning to decide how to allocate your MVP development team. In general, more experienced developers will be more expensive than less experienced ones. However, they will also be able to complete the project in a timely manner and with fewer errors.
Moreover, software developers with an experience in a specific tech domain in which your MVP will operate may be more expensive. But they will be able to provide valuable insights and guidance that can save you time and money in the long run as a startup looking to stay competitive in the market.
Another factor includes the location of the team which can have a significant impact on the costs of MVP development. In general, software developers in North America, Australia, and Europe tend to be more expensive than those in other parts of the world like Ukraine, Asia, and more. The reasons for varied price fluctuations may include various factors like the cost of living in these regions and the greater availability of experienced developers.
Therefore, as a startup, if you are looking to minimize the cost of MVP development, consider outsourcing the development tasks to developers, or companies in Asia or South America. Ultimately, whether to outsource MVP development will depend on various factors, like budget, timelines, the technology used, and various project requirements.
Last but not least, the design of an MVP can have a major impact on the overall development costs. A simple, text-based MVP including one or two screens will be less expensive to design than a more complex app with multiple screens, features, and a custom user interface. However, it’s recommended that the MVP design should be based on the needs of the target market and the goals of the project.
A well-designed MVP that is easy to navigate and offers a great user experience can turn out to be the major factor for the success of a startup, even if it costs more to develop. On the other hand, a poorly designed MVP that provides a poor user experience is likely to fail, even though if it’s not that costly to develop.
Now that we’ve gone over some of the major factors that impact the MVP development cost, let’s move further to take take a look at how these MVP development costs can be reduced to help startups save money.
Ways to reduce the cost of MVP development for startups
As a startup, the main priority is saving on the costs to develop an MVP. Fortunately, there are several ways to reduce these costs without compromising on quality or sacrificing the features that are most important to the success of the product.
Never miss out on basic features
As a budding entrepreneur for a startup, it is always tempting to want to include every feature in the initial product release. However, this approach can often lead to cost overruns, massive project delays, and missed deadlines. Therefore, a better approach is always to focus on developing the product’s basic features first. This will help reduce the overall development costs and increase the chances of delivering a successful MVP.
By spending some time with the team to finalize the basic features, startups can ensure that they are building a product that meets the needs of their target market. Also, this approach will help you get feedback from the users and make necessary changes before releasing a full-fledged product. As a result, starting with core features is a more efficient and effective way to develop an MVP.
Never forget existing libraries and frameworks
For startups, time and budget are a few of the major considerations when it comes to development. Therefore, never missing out on the existing libraries and frameworks can help reduce the MVP development cost.
By leveraging help from existing code or technology frameworks, startups can save time and money that would otherwise be spent on developing features from scratch.
Try to focus on one platform
It is always recommended to choose from either a web-based or mobile-based platform, and prioritize that over any other potential options. As this will help startups to invest all of their resources into focusing on just one platform rather than spreading themselves too thin and trying to develop for multiple platforms simultaneously. This can cause major delays in the project and also result in code errors.
Outsourcing to experienced professionals
If you are a startup and looking out to save money, outsourcing your development task can do wonders. Because outsourcing is a cost-effective solution for startups looking to launch their MVP. By working with an experienced app development company, you can get the benefit of reduced development costs, shorter project timelines, and access to a team of experts that can help you provide advice and turn out to be a savior where you are stuck..
One of the biggest benefits of outsourcing app development is that it reduces the overall cost of the project. As various application development companies typically have lower overhead costs than in-house teams, and they can also leverage their existing infrastructure to keep costs down.
Apart from the above-mentioned tips, there are various other ways to reduce MVP development costs. Like, startups looking to stay competitive in the market can save on budget may consider using open-source technologies or leveraging the power of serverless computing. By keeping this in mind, tech startups can ensure that they are making the best possible decisions for their businesses.
Undoubtedly, developing an MVP can be costly for a startup. However, there are a number of ways to minimize the cost of development while still building a high-quality product. By carefully considering all the factors involved and making smart decisions about team size, location, platform, expertise, and design, it is possible to develop an MVP that meets the market needs without going out of budget.