Eric Ries, an American entrepreneur and author of The Lean Startup, first used the term Minimum Viable Product or MVP. He described it as that version of a new product which allows a team to gather maximum validated learning about customers with the least amount of effort. Over time, the definition evolved to be “the smallest thing built that lets you quickly make it around the build/measure/learn loop.”

For instance, in case your business idea is to build a website for socializing, your MVP has features like user log in, account profiles, and messages.

An MVP is stripped of all non-functional requirements, such as performance, maintainability, security, usability, scalability, etc. You need to be mindful of the different kinds of MVPs, varying based on your business idea and feature requirements.

Two factors that play a critical role in deciding the right quote are the developer’s hourly rate and the hours it took to develop an MVP. Ideally, it should take around 2-4 months to develop an app MVP. The duration may vary based on the vendor. For instance, a developer takes 40 hours to build an MVP, and his hourly rate is $50. The weekly cost for this MVP is (40 hours * 50) $2,000.

The golden formula is:

How digital transformation can grow your business?

Hourly rate * number of hours worked = cost of an MVP

In this article, we talk about the cost involved in building an MVP, based on where you get it done from and the diversity in domain features.  

How To Understand Feature Requirements for your MVP

Functionality and design are two crucial aspects of MVP development. It’s tricky to choose features for an MVP because of a limited budget, hyper-active competition, and clients with expectations. It’s essential to understand and set clear goals to drive your development. Here’s how you find your value proposition – the perfect balance among your offerings, the marketplace offerings, and customer needs.

Requirements for your MVP

The features that you should include in your MVP depend on your business idea, timeframe, and budget. Think of your MVP as the first step towards a great product. Getting the first step right would escalate the sequential ones.

It would be best if you asked yourself questions like

a. How would your user-interface look like?
b. Is the navigation good?
c. Does it serve the purpose of testing?

Moving forward, you need to decide where you want your MVP developed. Based on your skill and requirements, you can either start working on your business idea or hire other professionals/ freelancers to do it for you. 

1. Build a manual version of your idea:

Several startups choose to go this route to keep their budget in check. In many scenarios, developers launch a landing page that helps them understand customer demand for their products. It may be a great place to start from for cheap but would only get you so far.

Cost: $10 to register a domain.

2.Hire a Freelance Developer:

Working with a freelancer requires you a pen down a list of initial features for your MVP. Most freelancers love to work with entrepreneurs. Their strong opinions about what tools and technology to use, constant iterations, and openness to new ideas ensure better delivery.

The only cons of working with freelance developers are that you need to micromanage the entire project. Thus, hire someone great at both communications as well as technical skills.

Cost: A good MVP would cost you $15,000 – $20,000 on average.

3. Outsource:

The third way to get your MVP developed is by outsourcing your project internationally. Many entrepreneurs look for outsourcing sites to keep their costs in check. On a typical day, it is hard to figure out who is right for your project. You might end up spending more in the long run, to set up iterations or manage the entire project.

Cost: Depending on features and skill level, anywhere from $500- $5,000

4. Hire an agency or development company:

Hiring a preferred app development company for your MVP might turn out to be the best decision you take for your business. Collaborations with multiple levels of managers make it possible for the agency to understand your business goals and build an MVP around the same.

These companies generally have UI/UX experts that ensure you get what serves value for your customers. However, it would help if you were mindful that some companies can lack flexibility in their businesses, which might hamper your product development.

Cost: Depending on the company’s size, a minimum MVP may be anywhere between $30,000 -$50,000 and some charge substantially higher based on skills and experiences, All in all, you need to figure out what is right for you in terms of features, budget, and source of your app development. Get in touch with experts at Copper Mobile for more insights on the cost of your MVP.