How Much Does it Cost to Develop an MVP
- May 25, 2024
- 5 Mins read
Category
MVP
MVP development offers several advantages to businesses and it is common knowledge that MVP development incurs less cost than full-fledged product development.Â
However, the answer is not enough for most business decision-makers – knowing the ballpark estimate of MVP development cost gives a far clearer picture and allows businesses to plan, budget, and strategize accordingly.Â
This blog shares the breakdown and answers how much does it cost to build an MVP. And list the factors that influence the cost.Â
Factors that Influence the Cost of MVP Development
- Technology Stack The choice of technology stack is a pivotal factor in determining the cost of MVP development. If the project requires the use of highly specialized technologies, the cost will likely be higher. This is primarily because experts in these niche areas are often scarce and command higher salaries. For example, employing a tech stack that includes advanced machine learning algorithms, blockchain technology, or uncommon programming languages can drive up costs.
- Location Geographical location plays a significant role in the cost of MVP development. The hourly rates for developers and designers vary considerably around the world. Typically, Asian countries such as India, Vietnam, and the Philippines offer the most cost-effective options, with lower hourly rates compared to their counterparts. In contrast, North America and Europe are among the most expensive regions for hiring tech professionals..
- Project Scope The scope of the project is another critical factor affecting the cost of MVP development. This includes the number of features and functionalities, the complexity of the application, and the level of UI and UX design required. A project with a vast array of features, intricate functionalities, and sophisticated user interface design will inherently cost more than a simpler, more streamlined MVP.
An Idea to MVP (Stage-wise MVP Development Cost Breakdown)
Turning an idea into a Minimum Viable Product (MVP) involves several stages that require time, effort, and expertise. Below is a detailed breakdown of the MVP development cost incurred during each phase of MVP development.
- Discovery The discovery phase is crucial for laying a solid foundation for your MVP. This stage involves the following tasks:
- Requirement analysis Understanding the project requirements and defining the scope. This phase also identifies clearly weather the Mobile Application Developemnt services or Web Application Developement services are required.
- Wireframing Creating initial sketches of the user interface to visualize the layout and functionality.
- Proof of concept development Developing a basic version of the product to validate the feasibility of the idea.
- Prototyping Building a more detailed model to test specific features and functionalities.
- Estimated time required This phase typically takes a few weeks to a month and costs around $10,000 - $12,000
Development
The development phase is where the actual product is built and the entrepreneurs decide either the Mobile App development services or Web App development services are required. This stage requires the following expertise and tasks:
- Expertise Required
- Designers Designers with relevant experience and expertise to create an engaging and user-friendly interface.
- Developers A team of senior, mid-level, and junior developers proficient in technologies required for the project. Developers typically write the code for the application’s functionalities.
- Project Manager Typically, one project manager who oversees the project and ensures that it stays on track.
- QA Engineers To test the application and ensure it is free of bugs.
Tasks Involved
- UI/UX Design Creating detailed designs for the user interface and experience.
- Feature programming Writing the code for the core features of the application.
- Feature testing Ensuring each feature works correctly through rigorous testing.
- API development and integration Developing and integrating application programming interfaces to enable various functionalities.
- Feedback implementation Incorporating feedback from the client and users to improve the product.
- Estimated Development Time MVP can be developed within a time-frame of as short as 90 days (which will definitely incur lower cost) and can extend to uptill a year. However, most MVPs take around 6-8 months to develop an MVP.
- Accumulated Cost Based on the Talent’s hourly Rates The cost can vary significantly depending on the complexity of the project and the location of your development team. On average, it ranges between $40,000 and $80,000.
Options for MVP Development
- In-house development
- Scenario 1 - Already have an in-house team
- If you already have an in-house team, the MVP development process involves utilizing your existing resources to build the product. Your team will be responsible for all aspects of development, from initial design to deployment and maintenance.
- Pros
- You can scale the team up or down based on project needs.
- Lower costs compared to hiring full-time employees.
- Gain access to specialized skills that your in-house team might lack.
- Quickly ramp up your development team without the lengthy hiring process.
- Cons
- External staff might take time to integrate with your in-house team.
- Potential communication barriers if the augmented staff are remote.
- Reliance on external personnel who may leave once the contract ends.
- Maintaining consistent quality and oversight can be challenging.
- Scenario 2 - Hiring an in-house team
- This involves recruiting new employees specifically for the MVP project. This can include developers, designers, testers, and project managers.
- Pros
- A dedicated team focused solely on the MVP can increase productivity and quality.
- You can hire team members with the exact skills needed for the project.
- The team can continue to develop and maintain the product post-launch.
- Cons
- Recruitment, salaries, and benefits can be expensive.
- The hiring process can be lengthy and might delay the project start.
- If the MVP fails, the investment in the team might not yield the expected return.
- Only consider hiring an in-house development team if the estimated profits from the MVP are projected to outweigh the costs of development.
- Staff Augmentation
- Staff augmentation involves hiring temporary external developers or other professionals to supplement your existing team. This can be done through contract work, freelancers, or agencies.
- Pros
- You can scale the team up or down based on project needs.
- Lower costs compared to hiring full-time employees.
- Gain access to specialized skills that your in-house team might lack.
- Quickly ramp up your development team without the lengthy hiring process.
- Cons
- External staff might take time to integrate with your in-house team.
- Potential communication barriers if the augmented staff are remote.
- Reliance on external personnel who may leave once the contract ends.
- Maintaining consistent quality and oversight can be challenging.
- Outsourcing to a Software Development Company
- Outsourcing involves contracting an external software development company to handle the entire MVP development process. This includes everything from initial design and development to testing and deployment.
- Pros
- Access to a team with broad experience and specialized skills.
- Allows your in-house team to focus on core business activities.
- Development companies often have established processes and can start quickly.
- Potentially lower costs compared to maintaining an in-house team, especially for short-term projects.
- Cons
- Less direct control over the development process and priorities.
- Potential communication issues due to time zones, language barriers, or different work cultures.
- Varying quality between companies; need to thoroughly vet potential partners.
- Increased risk of intellectual property theft or data breaches.
- Evaluating the Software Development Company
- Access to a team with broad experience and specialized skills.
- Ensure the company has experience in your industry and with similar projects to gauge the effectiveness of their MVP development services.
- Assess their communication practices and ensure they align with your expectations.
- Look for a company that provides clear timelines, cost estimates, and regular progress updates.
- Consider the availability of ongoing support and maintenance services after the MVP launch.
Conclusion
The question of how much does it cost to build an MVP requires more than a dollar figure answer. And the sections above attempt to answer it by breaking it down and giving you the estimates.
If you plan to initiate an MVP project with an MVP development company, consider partnering with Hudasoft – a development firm with several successful MVP projects.
No matter the industry you operate in, our proficient team can execute your project to perfection.
About the Author
Azfar Siddiqui is the Founder of Hudasoft Inc. With over 20 years of diversified experience, he is a seasoned professional in the fields of Technology, Security, Digital Transformation, and Automation of Processes. His experience spans across 10+ countries, giving him a global perspective on these industries.
Siddiqui brings a wealth of knowledge and expertise to the table, particularly in the areas of Automotive, Fintech, EdTech, Proptech, and Healthcare innovation. This makes him a valuable asset to any organization looking to leverage technology for growth and success. Connect with Siddiqui at LinkedIn: Azfar Siddiqui