How Much Does It Cost to Build an MVP in 2022?

In software development, an MVP, or Minimum Viable Product, is a working version of a project that meets the bare minimum requirements. MVPs allow you to get feedback and make changes if necessary. By outsourcing MVP development to Neetable, the costs can vary between $25,000 – $40,000. In contrast to building a full-fledged app, building an MVP is much more affordable.

What Is An MVP?

MVPs are the simplest versions of products that have all the core features early adopters want to see. An MVP is the simplest yet most usable version of a product. This is what a typical MVP looks like:

• It has core features that make the product unique and can be used by early adopters.
• The product validates the idea behind it.
• It can help you get started with the monetization strategy of your product.

The features included in the MVP should be prioritized based on their importance to your product's core functionality. A minimum viable product consists of the first version of your product which demonstrates its basic functionality. A prototype of the product is created to validate the concept before moving forward. User feedback and iterations supercharge your digital products, making them better over time.

What Are the Benefits of Building an MVP?

There are various benefits to developing an MVP. Three possible scenarios can result from developing an MVP for your app idea.

Test for success

Let's say you launch your MVP and it passes all the benchmarks for success in the market. The idea then seems valid and marketable. Consequently, you can continue developing your MVP by adding features.

Test for improvement

If your audience has any concerns or is not satisfied with any features, you receive feedback from them. In summary, your MVP is not hitting it off as you expected, but you can use this data to improve and make it more marketable.

Test for failure

As you analyze your MVP, you may discover that your MVP app development idea is not feasible. In this case, it is considered unsuccessful. The reality is that having a failed MVP is better than investing all your money in developing a full-fledged app only to end up losing money.

What Benefits You Would Look to Create in an MVP?

Early feedback

MVP development relies heavily on feedback. Using it, developers can learn more about what people feel and think about their products. User feedback can assist developers in understanding which parts of the product are most popular or should be revised.

Cost-effectiveness

By building an MVP, you will be able to save a great deal of time and money. MVP allows you to evaluate your idea before committing to a full-fledged app and committing a lot of resources. Will it be accepted by people? Will they find the app user-friendly and easy to understand? What features will they find helpful? You will get an answer to all these questions and more and ensure you are heading in the right direction with your app.

Possible investments

Demonstrating the MVP will attract investors and stakeholders. Your product's presentation, its features, functionalities, user feedback, and how the application performs could make a huge difference when it comes to attracting the attention of investors.

Minimum time to market release

It is easier to show users a working application as early as possible when you release a working product. By releasing the product sooner, you'll be able to attract potential investors, get feedback, and improve its features if necessary. In order to develop the final application, releasing the Minimum Viable Product is crucial. Developing a minimum version with basic functionalities will enable you to determine what features need to be improved or developed further. There will still be plenty of time for updates and further development after receiving the feedback already mentioned.

Test your product in real market conditions

The process of verifying an idea is fundamental. You can not only test if your vision makes sense, but also determine whether a market exists for such services. If your idea succeeds, you'll have a clear answer, and you can decide whether you want to proceed.

Factors That Affect the Cost of MVP Development

Type and complexity of MVP

The cost of building out your MVP will vary depending on the type of your MVP and also the complexity and size of your features.

Simple MVP

Those apps that contain minimum screen transitions and core features can be categorized in this section.

Average Complexity

Some of these apps have extra features like payment portals, geolocation, etc. The MVP development of these apps could take more time due to their specific business needs.

High Complexity

Apps like over-the-top platforms, enterprise-level apps, taxi apps, and food delivery apps fall into this category. App MVPs may include advanced features such as video conferencing, live streaming, location tracking, or in-app purchases.

Technology used

By using the right tools, you can create your MVP (minimum viable product) quickly. You will need to consider your choice of development platforms and languages, your deployment mechanism (on-premises or cloud), and your approach when determining your costs. You should also consider the learning curve for your development team and the risks of the platforms. A significant part of the overall cost of development will be determined by the technology you select for the MVP. The ability to build an MVP requires knowledge of different technologies and frameworks. Third-party integration may also affect the overall development cost of the MVP. It is therefore best to hire an MVP app development company, as they can suggest a technology that is suitable for your needs and reduce costs.

Time taken to build an MVP

Time is a function of product complexity and the technology stack chosen. The aforementioned factors will increase the time it takes to build the MVP, and the resulting time increases the budget.

Choosing your development team

• In-house development team

In-house development allows you to modify your project quickly as needed. However, this could incur additional costs and you may also need to manage and adjust the product creation process.

• Freelance specialists

Freelance experts typically charge less than specialized agencies but to hire a reliable professional you may have to spend a considerable amount of time on research. If you hire a freelancer, the MVP development cost can reduce depending on the developer's hourly rate but reliability and accountability are important factors to consider here.

• Specialized development agency

A specialized company may be able to help you develop your MVP with high confidentiality, as these agencies are experienced in the MVP development process from start to finish. To evaluate a company's capabilities, you can either review testimonials on sites such as GoodFirms or Clutch or you can also contact their previous clients.

The engagement model

From a cost and cash-flow perspective, choosing the right engagement model is imperative for early-stage startups. There are two common engagement models: fixed price and time and material.   A fixed cost model lets you define the outcome in terms of features and timelines and determine a cost for each. The model ensures the predictability of cash flows, but these projects require careful monitoring and management. Unlike fixed-cost models, the T&M model allows you to scale up or down based on the requirements, and it is also more cost-effective.

How to Develop an MVP?

Launch your MVP with our tried and tested development process.

Discovery

The project manager and product owner discuss the goals and requirements of the project. The project manager determines a possible timeline, technological stack, and team roster.

Design and development

Team members work on both the visual side as well as the source code of the future MVP, ensuring that each project requirement is met.

Testing and deployment

QA engineers test source code and send faulty code back for revision. Upon testing the source code, deployment and launch follow.

Post-launch maintenance

Following the MVP launch, the development team keeps in contact with the product owner. In some cases, flaws only become apparent after users begin to use the app. It is the responsibility of the development team to eliminate any bugs found in the source code produced during the guarantee period.

A sustainable approach to software development is possible through our time-tested and carefully formulated development process.

How Much Does MVP Development Cost?

An app solves a problem your target audience faces and makes life easier for them.

Analyse and understand what your users want with an MVP. By analysing your preliminary ideas and considering what needs to be developed first, you can manage expenses more efficiently and launch the product successfully

But, how much does MVP development cost? The average cost of MVP development is $25,000-$40,000. Development costs can be limited to your planned budget by focusing on

• the core functionality,
• starting with a basic design,
• using third-party modules.

We can really make a difference to your MVP app with the help of our talented development team. With our years of experience and expertise, we have helped startups launch fast, on time, and within budget. If you require any assistance to develop your idea into an MVP solution, hit the link below to connect with us.

FAQs

1.How do you calculate MVP?

Not sure how to calculate MVP costs? All companies use the following formula: scope of work x company’s hourly rate. The developers estimate the scope based on how much time they need to fulfill certain project requirements. The more concise the requirements, the more precise the estimate

2.What is a good MVP?

A good MVP is a ready-for-use product that lets users solve a problem. It is always based on the “start-small” approach containing only functionality users need right away, nothing more.

3.What is the purpose of MVP?

The purpose of an MVP is to get the end-users and investors’ feedback on your product before developing the full-fledged working model of your product.