Most people have an app idea and hope it’s going to be successful in the blink of an eye but having an idea is not just enough. Hundreds and thousands of business ideas come to entrepreneurs around the globe, but in most cases, only a few are worth investing in and rarely few find success and global recognition.
However, Most business ideas fail because the companies or organizations fail to research or survey their target audience. Most times researchers on information ask people whether they need the product they are trying to sell. Does it offer a solution to their current problems, is useful, valuable, and accessible?
If your product can relate to these questions, and you have answers to it the chances of it winning are significant.
3 important categories to classify your products
- Minimum – the least expected to get things going
- Viable – the product you can develop when you are a developing enterprise with the funds to finance a big project.
- Minimum-Viable – the perfect product for startups to create. Useful and within your starting budget!
Furthermore, bringing your idea to life is the biggest thing that can happen to you. And when it involves the financial benefits, that is like a cookie on the cake.
Several people are unable to bring their ideas to life just because of some bad mistakes they made in the beginning. Statistics suggest that 43% of the apps fail because the app was not required by the market. This is a very critical issue that needs attention and needs to be fixed.
To prevent problems like these, startups should invest in building MVP first. Probably you must be thinking, what is an MVP?
What is an MVP?
Stands for Minimum Viable Product that is used for finding a version of a new product in the market. This includes basic features of an application, which are enough to get validated learning about customers with the least effort.
It comprises only the core features of the app, ignoring the secondary attributes that are not important to the design. The main goal of an MVP is to give the user an idea of what the app will be like and how it will function when fully introduced. It will help you create an audience without taking risks.
Benefits of MVP
- Publish your product in the market in minimum time.
- Collect and expand user bases
- Test the need for your product, before releasing the full-fledged version of your product.
- Gain a useful understanding of what could work
- Work directly with your client and examine their behavior.
- Prevent the failure and large capital losses
- It helps you to determine user reactions to the product and examines their interactions, which demonstrates the purpose of the app in users’ lives.
7 Factors that affect the cost of an MVP application
MVP Cost is a significant factor that must be considered before embarking upon an MVP Development journey. To know how much it costs to design an app(MVP), we must first consider the main factors that influence MVP pricing.
When it comes to knowing the actual cost of an MVP, some factors are put into consideration to get the price. The total price of an MVP counts on the following attributes:
- The timeline required to build the product
- The complexities of the MVP app design
- The number of features to add
- The platform, Android, or iOS?
- Ability to know whether it is a Native or Hybrid app
- The users understanding
- The hourly rate of the company you hire for example A Chinese Mobile App Development company could cost up to $30/hour, whereas a Uk based development agency will charge $200/hour.
What Is the Cost to Build an MVP App?
Many factors determine the cost of building an MVP application.
Many creators assume that the cost of app development depends on the types of technology used, but that’s a lie.
However, you’ll understand the value of an MVP app when you know how the price is calculated and the rate of developing a full-fledged mobile app.
Here are some of the ways:
- Hire Freelancers developers
It is a quick, affordable, and easy way to start a project. There are various freelance platforms to help you find developers that can fit your needs. A few of them to start with are upwork.com, freelancer.com and fiverr.com.
One of the main problems in hiring freelance developers is their lack of commitment to the project. When problems occur they can easily just leave or abandon the projects. They also come with other difficulties such as communication barriers. Especially if the developer lives far away in another country. It’s challenging to contact them if the given number in their profile is unavailable or their Skype ID is unreachable.
This shows you have to become a project manager, and all coordination and communication are your duty.
For a typical project, hiring a full-time team is the best option. Let’s analyze the cost of freelance software developers.
A full-stack developer costs about $7 000 per month. This expert is required across the entire project development.
While a designer costs around $5 000 per month and this expert is needed at the start of the project.
Furthermore, you will need a tester throughout the development process, costing you around $2 000 per month. Then, the overall cost will be up to $14 000 per month.
- Build an in-House Team
Occasionally founders choose in-house software development. It gives them transparent relations and clear communication.
In-house development lets the team take absolute responsibility for the project. The quality is still your duty. Your developers are more encouraged by the success of the application and company,
An internal team is also much simpler to coordinate.
The major disadvantage of this In-house team is the relatively higher cost.
When you are employing full-time developers, you are required to pay almost all their expenses from holiday costs, hiring costs as well as many other expenses. An endeavor that your project needs this level of spending at the MVP stage.
Let’s look at how much it costs to build an In-house team.
A full-stack developer costs an average of $8, 700 per month while a designer costs $4, 500 per month. In addition, a tester costs $4, 000 per month and a project manager costs $6, 000 per month.
So, in-house development will cost you about $24, 000 per month or more.
- Hire a Local Team
Local product development is also another expensive choice. But majorly the price includes developed business and technology methods.
Hiring a local team would get you a dedicated development team, a project manager, and a tester with the level of involvement and legally documented procedures. There are so many local developers agencies around that offer good services for your project.
The agency rates vary from $100 to $200 per hour for one specialist. That means that the same team will cost you at least $400 to $500 per hour.
However, you need to be honest with yourself if you are ready to pay up to $64 000 per month to test your business hypotheses. If the genuine response is yes, this is a good alternative. We can help you hire the best local team at soar figital
- Outsource MVP Development
Outsourcing is one of the most popular options for many startups. It’s like hiring a local agency, but at a lower price.
However, there are two major difficulties when outsourcing your product development:
- building trust.
- involving the team.
However, both of these issues can be easily managed, if you do your research adequately and thoroughly before hiring the potential agencies. You can do your research by checking reviews, company websites, and looking at recent case studies.
What is the price to build an MVP with an outsourcing agency?
Most outsourcing agency rates vary from $18, 000 to $20, 000 per month.
In general, building an MVP can be an expensive one. Most budgets include the costs of design, project management, developer management, coding, and testing. Some projects also need maintenance to be involved after building the MVP.
Read also: 5 best frameworks for web development
The road to having an MVP that functions greatly is not an easy one and it requires much effort and the right team.
To achieve this and turn your ideas into reality and get the target audiences you want. Endeavor to formulate a business hypothesis, identify the main functions, and pick a good MVP development company for your project.