Todd Sumamno
Most young entrepreneurs and startups have heard about MVP. Its main aim is to verify whether users need a certain product and whether the idea underlying the business model is correct. The statistics prove that the startup failure rate reaches 90%. However, MVP is able to minimize the risk of failure, as well as the time and effort spent testing the market’s reaction to the project.
Is MVP Development Expensive?
Minimum Viable Product is a test version of the main product or service. Usually, it has minimal features and functionality.
Business owners are looking for ways to spend as little money and other resources as possible at this stage. And they always get puzzled by MVP development cost discrepancies they get from various agencies. The price gap is indeed impressive sometimes. The final cost largely depends on the budget and complexity of the project. But there are also some other factors influencing the MVP price tag.
Main Factors Determining MVP Price
Like all other IT projects, MVP creation requires a certain algorithm with several obligatory stages.
Number of features
The final product can solve several client problems at once. However, a large number of features at the MVP stage will complicate testing the idea rather than make it easier. The more features you implement, the more scripts and design pages will be needed, let alone the development time. Accordingly, it is a direct increase in costs. So, it is crucial to narrow down the MVP functionality to the necessary and sufficient minimum.
Tip. MVP should include only a few features that are most necessary for the target audience. You may ask developers to implement even 1-2 functions that will be the core of your project. Build your product with a possibility to scale. Additional features can be added later when you are completely sure that the idea will work. Feature-rich products may increase the potential cost by even 50%.
Design
Design is not a key parameter in MVP development, but it matters. It is important to make a good impression from the start. Nobody wants to use an app with an awfully-looking interface. But a decent design is not cheap. It usually accounts for about 10% of the cost of MVP development. There is no need to chase the perfect design. But still, your product should look modern and be easy to use.
Tip. Remember that the initial version of your product must be as simple as possible. All the unnecessary design elements will increase the costs. But you should not save on user experience (UX). It is the main design component that works as a communication bridge between the application and the user.
Technology stack
Of course, native applications are more efficient, faster, and make the most of the system capabilities. But, they have a high development cost. Cross-platform technologies allow you to save budget and speed up the product’s release.
There are many frameworks that allow you to write code for several platforms in one go — Flutter, React Native, Ionic. This approach will help make a wider market entry. It increases the number of potential users, allows a wider audience to test your product, and multiplies the chances for your app to be downloaded.
Tip. If you want to introduce the product to the market as fast as possible and engage many users, then it is better to opt for a cross-platform application. For example, React Native allows you to reuse 90% of the code. It will cost you 30% less than developing two native apps and will take less time to develop.
Testing
The development process is never completed. You will have to add new functionality and make other amendments based on statistics and feedback from users. Every MVP should be thoroughly tested to ensure its smooth performance and eliminate all bugs. As for the cost of this stage, it normally is 20-25% of your MVP development budget.
Tip. This stage cannot be neglected as the whole process is launched with the aim of testing the product. But there are ways to reduce the costs of testing. You can involve outsourcing teams that will make your product ready for the audience at minimal costs.
Team and technical specifications
It may seem that there is nothing complicated in finding a development team. The supply of IT services on the market is growing every day. But it is vital to understand whether you have enough resources to pay for such services.
Another problem is the clarity of technical requirements. Be it a freelancer or a reputable web agency, they may come back with a high estimate if you cannot detail your demands. The project requires clearly outlined technical specifications, assignments, and deadlines.
Tip. The correctly composed technical requirements can reduce the MVP costs and detect potential obstacles. This stage makes up to 25% of the MVP budget, but it will allow you to optimize the overall expenditure. To reduce your costs, you can hire a team of freelancers, who will do the same job for less. You can also consider outsourcing.
Key Takeaways
While analyzing a price for MVP, it is important to understand that these estimations do not come out of the blue. If you are looking for a cheaper alternative, you should consider all offers in detail.
No matter how much you plan to invest, MVP is an excellent approach to prevent mistakes. It will help you engage customers, understand product strengths and weaknesses, and increase the likelihood of future success. Moreover, MVP is gradually becoming not only a way to reduce risks but also a powerful tool to receive investor approval. Fewer and fewer people want to invest in an idea. Everyone wants to see a living concept proving the viability of the project. Even though MVP development prices may differ, you will still find an affordable solution if you approach it wisely.
