Table of Contents

    How to build MVP in a cost-effective way?

    • March 24, 2023
    • 5 min

    Before diving headfirst into anything new, it's smart to take a little test dive. The concept of a minimum viable product(MVP) is useful in this regard. You may create a working prototype of your product, put it through its paces in the field, adjust it based on what you learn from your market research, and then release the final version. The agile technique is much better since it allows for the continuous incorporation of market feedback into app development.Even though you know you should build a minimum viable product before releasing the full version, you may be hesitant to go ahead with your concept since you can't be sure how much finance will be invested. You can better estimate the funds needed to build MVP if you have a thorough understanding of all of the factors involved. Firstly, let's quickly review the justifications for creating a product development cost plan for your MVP before diving into the specifics of the components that determine those expenses.

    Create an MVP development cost plan

    Even if it costs less to develop a minimum viable product (MVP) than a complete product, not everybody has the financial resources to do so. Obtaining the necessary financing, whether from an investor or any other source, is a requirement. Before you accomplish any of this, you must have a thorough comprehension of the MVP cost plan. The lack of capital during product development is a major reason for failure for many new businesses. So, it is preferable to set a reasonable budget prior to making any purchases.

    Consider these factors for the cost to build MVP

    One of the variables that considerably impacts the price of the MVP is its complexity. In general, the simpler a product is the less it will cost to create, and vice versa. It is recommended to make a list of the necessary features and functionalities before moving on to the process of creating a budget. Divide the characteristics into essential, desired, optional, and preferable categories. The essential features should be further classified according to the user’s input, actions, and tasks.

    Furthermore, the quality of the design will determine how well the app performs. So, it requires specialist knowledge, wireframes, and attention to detail while being developed. Most of the development costs are expected to come from this aspect. Strong UI/UX design may help you build a strong product brand even before you release a minimum viable product. Lastly, it depends on the team hired to build MVP. You have options like having an in-house team, hiring freelancers, or hiring a remote team from an agency.

    When you hire an in-house team, you need to pay them a salary based on their experience, give them office space, provide company perks and establish a good work environment and culture. Thus, from a financial point of view, hiring in-house developers are expensive. Whereas hiring a freelancer may be beneficial from a financial point-of-view but there is no one to supervise the work of freelancers. For non-tech founders, this becomes tough. On the other hand, hiring an agency that has expertise in MVP development for startups is beneficial. The progress of the project is continuously monitored and reviewed by the project managers and then the update is given to the client.

    Reduce the cost of developing an MVP

    As discussed above, if you hire in-house developers to build MVP, including the salary, system, and benefits, it will cost you approx. $132,000 to $160,000 per month. In case you hire freelancers, you need to pay roughly $10,000 to $15,000 per month. But, if you hire an agency from India, you can expect the cost of developing an MVP approximately between $4,000 to $15,000 per month. Thus, working with an agency located in India to build MVP is a cost-effective way. Your project will be managed efficiently and you will be updated at every stage of the product development process. Additionally, you don’t have to pay for the license of the software to be used for the development. The agency will have all the leading licensed tech.

    Furthermore, work is not done by releasing an MVP in the market. It’s just the phase of the project development where you can get input from users and can make necessary upgrades to the product. Thus, for continuous improvement and maintenance, you will need a dedicated team. In this case, as well, working with an agency is the ideal approach to save money and get updates made to the product on time.

    Conclusion

    Now you must be knowing how you can save your finance and turn your unique idea into reality by working with an agency. By reading the success stories of teaching application for web and mobile & mobile app for sommelier, explore how we developed the MVP of these two apps.

    FAQs

    How long should an MVP take to build?

    This completely depends on the complexity of the product and the expertise of the developers. With few necessary features, it takes 3 to 6 months to build MVP.

    How much does building MVP cost?

    If you hire in-house developers to build MVP, it will cost you approx. $132,000 to $160,000 per month. Hiring freelancers will cost you roughly $10,000 to $15,000 per month. But, if you hire us, you can expect the development cost of approximately $4,000 to $15,000 per month. Working with Alian Software to build MVP is a cost-effective way.

    Should you outsource your MVP?

    It’s a great strategy for developing MVP quickly and well, even if you don’t have much experience in the field.

    Why Building MVP is important?

    Building a minimum viable product is important because its potential may be evaluated by measuring factors such as app use, user engagement, and user satisfaction.

    How to choose an MVP development company?
    When selecting an MVP development company, there are a few basic points to consider. Company should be having clear understanding of project goals, objectives, and deadlines. Company that focuses on completing tasks. Reviewing the portfolios of the company and skills. Lastly, check the QA service of the company by reading client reviews.

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    Freelance Mobile App developer