Mobile App Development How Much Does it Cost to Build an MVP App in 2024?

Dip your toe in, before diving in! In today’s world where everybody is running a sort of stratus and everybody is an entrepreneur, the business field is aggressively getting competitive. According to the CNBC report, only 2 of the 10 businesses are surviving in the market, because of poor financial planning and the wrong market. 

So, if you want to start a new start-up, but don’t want to be part of the failed ones list, then first, you need to build an MVP app. Minimum Viable Product will give you the best suitable idea of how your product/service will work in the market. 

In addition to that, it will also provide you with feedback for further iterations. However, building an MVP can be cost-effective in the compassion of full product development but if you want your business to meet customers’ needs, stay up with industry standards, and stand out from the competition then you will need MVP development services. It’s nothing, but a long-term investment that can really help your business to stay and grow in the market. 

From now on you will know everything about MVP and you will notice that is an important factor that you must practise in your business to keep going. 

Let’s go!

What is MVP?

MVP stands for a minimum viable product, this product is basically a fundamental strategy in product development that aims to quickly test your product, in addition to that, by doing this you will get first-hand experience of the market, and improve new ideas while reducing risk and resource costs. 

Moreover, businesses can efficiently satisfy the market by collecting important user feedback and insights. By this, you can concentrate on important features that meet the critical needs of a specific target audience during real-world usage. 

MVP app development will help you in iterating the improvement to put forward a basic version of your product so that you can analyse it better and reduce the chances of being sabotaged in the real world. 

Developers and other team members can seamlessly make it better using the feedback and data coming from users. Thus, testing and checking the features could be done in just a fraction of a second and the problems could be effortlessly determined as a result. 

This repetitive process speeds up the validation of your product ideas and allows you to make well-informed decisions at the start of the development phase. By using the information collected during MVP testing, you can continuously improve your products to meet the market standards and user requirements. In the end, MVP serves as the first step in developing impactful solutions that improve via ongoing tweaking and adjustment based on market input.

Why do you need MVP?

Fastеr Timе to Markеt: 

In the process of minimum viable product development, this process is the most important one, in this process, you will be able to accelerate time to market. Well, analysing the time acceleration in the market is crucial for successful product development strategies. 

It is already proven that by embracing the Minimum Viable Product approach, organisations can swiftly navigate towards market entry with the right strategy and planning. In addition to that, it will also ensure the rapid adaptation to customer feedback. 

This agility that comes with MVP not only positions your business ahead of competitors but also facilitates invaluable insights for enhancing product quality. Moreover, real-world data integration further enhances this process, enabling iterative improvements that directly shape your final product, so that it could do better in the market.

Cost-Efficiеnt Dеvеlopmеnt:

This strategy approach by the businesses not only saves money but also lowers the risk of the product to the marketer, the essence to build a minimum viable product lies in its cost-effectiveness. 

This practice is done by organisations to focus solely on essential features necessary for the initial product launch. In addition to that, this approach not only conserves resources but also mitigates risks for businesses, offering a practical means to validate their ideas in the market with minimum investment. 

The focal point of this methodology is the testing of the minimum viable product in the market and gathering feedback from users, this allows iterative improvements to the developers and more efficient resource allocation. 

In essence, low-cost minimum viable products serve as a pivotal tool for entrepreneurs who are interested in seeking to introduce innovative products or services within constrained startup budgets. 

Related blog: What Is Minimum Viable Product (MVP)? (Full Guide)

Risk Management:

As we have also discussed before most of the startups fail in their initial years, but MVP can be their life saviour at this time. As MVP allows early adopters it simply means that MVP gives you the chance of launching your product for some initial users. 

This strategic approach for organisations should be taken by the organisation to develop a minimum viable product (MVP) that will tell you how your product or service is going to perform in the real market. 

Moreover, this whale is performed by the leaders not only to check the product but also it enable companies to gain firsthand insights into market adoption and gather crucial user feedback. 

Such feedback is instrumental in identifying areas for improvement or issues that require attention before significant resources are committed. Moreover, utilising MVPs for testing business hypotheses serves as a risk management tool, reducing the likelihood of costly mistakes and enhancing the prospects for product success. 

Usеr-cеntric approach: 

Businesses can also have a custom MVP software development to know user feedback that will play a pivotal role in your organisation towards your latest launches. In addition to that, it will also help you in guiding the iterative upgrades of a product, ensuring it evolves to meet market needs and standards effectively. 

As a result, this user-centric approach not only facilitates product improvement but also cultivates stronger relationships with initial customers. Ultimately your product will become more engaging in the development process. Placing consumers’ demands at the heart of product evolution ensures not only making the product user-friendly and high-quality but also long-term customer satisfaction.

Itеrativе improvеmеnt:

Itеrativе improvеmеnt simply means that it will give you the chance to refine your basic product version before going into the real world. By doing this you get to know how exactly your product is going to perform in the market when it is launched officially. 

In other other, minimum viable product development facilitates iterative improvement by allowing organisations to launch a basic version of their product and refine it based on user feedback and data. 

This approach streamlines testing and feature validation, quickly identifying and addressing issues in the initial stage and if you will be able to identify the issue at an early stage that simply means that you can also be able to resolve it at your soonest.

It empowers organisations to offer a flexible product that adapts to market dynamics and diverse customer needs through shortened, manageable iterative cycles. By iterating in small steps, companies can efficiently evolve their offerings according to the target audience to better align with market demands and enhance overall product viability.

So, these are the benefits of implementing MVP in your business and after knowing all the benefits of it you must know that it could be the best decision for your company. Now after knowing the advantages of implementing minimum viable product development in your organisation you also need to consider how much does it costs to build an MVP. So, let’s have a look into it:

MVP software development budget

People who don’t know about the MVP, they may think that it must be something that could be costly but the reality is a bit different, MVP cost is not more than completing a whole project. However, some organisations like startups can not afford that due to the high restrictions in the budget. 

In other words, despite being a more cost-effective approach compared to developing a full product, creating an MVP still requires adequate funding, which may not always be readily available to all. Other than anything this tells you how securing funding through investors or other means is important to survive in a world where competition is at its peak. 

Before pursuing funding, it’s essential to have a clear understanding of the MVP budget and its allocation. This ensures that resources are appropriately directed towards essential development stages, maximising the potential for success in validating the product idea and gathering crucial user feedback. 

So, here we will have a discussion on factors that can affect the development of the minimum viable product. 

Factor affecting MVP

Type of application 

According to the product and then the audience or users of that particular product the MVP development will vary. Simply the more your product is the more the MVP will be complex and the more the cost. 

In simple words, the complexity of an application significantly impacts the cost of developing an MVP. A simpler product entails lower development costs, whereas complexity increases expenses correspondingly. 

However, we have discussed that MVP is a long-term investment for you so, you may not think hard about the budget but also should check our limits as well. To achieve a good yet clear minimum viable product it is important for business to list all required features early in the budgeting process. 

In addition to that, to be more concise and to be more pocket-friendly MVP you also use the technique of categorising the features. Categorising features that you want into three main categories those are; must-have, not-to-have, and good-to-have. 

You will fill the features according to the need and it will help you in prioritising development efforts effectively. Moreover, the must-have features should be further categorised based on user input, actions, and activities, ensuring that essential functionalities align closely with user needs and product objectives. 

As a result, you will finally come up with the most needed features and functionalities that you will need in your MVP and you can save big while doing this and not including some unnecessary features into it. 

Designing 

It is needless to say, the success of any application hinges significantly on its design. The better the design, the better the user will find it attractive and want to use it or recommend it. Therefore, one should offer careful attention to UI/UX, wireframes. Expert design expertise is paramount while developing the MVP. 

Here, the MVP price is heavily affected by some factors, underscoring their critical role in shaping user experience and overall product functionality. 

If your designer has built a powerful UI/UX design then it will not only improve the usability but also establish a strong brand identity right from the MVP stage. While making the extensive wireframes act as the foundation for the entire application, whether in its MVP form or as a completed product. 

Creating detailed wireframes is an important part of the development process it helps in accurately representing the structure and flow of the application, guaranteeing smooth development and engagement from users. 

Development team 

The cost of a minimum viable product also depends on which kind of team you want to hire to develop your minimum viable product. Basically, there are four types of teams that you can hire:

1. In-house
2. Freelancers
3. Locals
4. Outsourced

• In-house team for MVP development

If you want to create the minimum viable product internally then it will involve incurring different expenses that contribute to the overall development advancement. Basically, these expenses would include multiple things like developer wages, expenses for setting up IT infrastructure, costs of acquiring hardware and software, training expenditures for technology, employee benefits, etc.

Providing benefits to retain loyalty is necessary when employing a team of full-time developers on-site. The overall costs highlight the importance of financial planning and investment required to effectively implement MVP development within a company’s current infrastructure. 

• Freelancer 

Choosing a freelance developer for MVP app development could be a smart financial decision, resulting in possible cost savings. However, the primary emphasis usually centres on assessing their level of expertise. Many business owners have doubts regarding the skills and trustworthiness of freelancers in terms of delivering high-quality work. A lack of communication can hinder the management and execution of projects.

Freelancers often offer their services at affordable prices. Bringing on a full-stack developer on a monthly basis typically comes with a price tag of $5,000, ensuring continual progress and technical oversight throughout the project.

Employing a designer at the start of the project, costing approximately $4,000 per month, ensures that visual and user experience aspects are integrated from the beginning. Furthermore, allocating a budget for a specialised tester costing around $2,500 monthly helps maintain quality control throughout the different development phases.

Freelancers generally request between $4,000 and $15,000 to develop MVP software in terms of overall project costs. The freelancer’s expertise, background, and dedication to aligning with the company’s goals are key factors in the project’s success.

• Local team 

Opting for a local team to create an MVP allows businesses to have close proximity and direct communication with their development team, which is advantageous.

This proximity can facilitate quicker decision-making and enhance alignment with the organisation’s goals and functions. Choosing local development teams typically results in higher costs compared to offshore outsourcing, even if it means avoiding expenses related to setting up infrastructure and software/hardware.

Normally, hiring an MVP builder from the local area costs between $150 and $200 per hour. For instance, if a group of 5 employees is brought on board at an average cost of $150 per hour, the overall expense of creating an MVP could vary from $160,000 to $180,000.

This investment highlights the importance of local expertise and the benefits of working closely and overseeing projects more conveniently due to proximity. This approach often helps companies that value active management and cultural alignment to increase their financial investments.

• Outsourcing MVP development

A lot of businesses choose MVP outsourcing due to its proven effectiveness. Data reveals the high level of satisfaction among business owners with their outsourced partners, standing at 78%, and highlights the significant in savings MVP development cost.

During 2021 alone, a substantial $75.2 billion was allocated for outsourcing security services, underscoring the significant investment and trust placed in external collaborators.

Among the various outsourcing models, offshore product development firms are often the top choice. These companies create expert teams focused on MVP development, making use of cost efficiencies and specialised expertise. Crucially, the assigned project manager acts as the primary contact, ensuring seamless communication and adherence to project timelines. This structured approach enhances efficiency, responsibility, and understanding in the MVP development process.

So, these were the main factors that really affect the cost of an MVP development project. We have everything discussed related to “How much does it cost to build an MVP app,” so, if you have read this blog with full attention then 50% of your problem we have solved already by telling you that outsourcing the MVP development team is the best solution for any business to pick. 

Now it’s time to let you know the best outsourcing team to hire dedicated developers for your minimum viable product development. 

TechGrospe: Convert your business idea into reality

TechGropse exactly knows how to build an MVP app and we are skilled in crafting strong mobile app development solutions customised for startups and established companies globally, producing significant outcomes. 

We are extremely proud of our work and use our distinct methods to enhance the likelihood of obtaining investment. Our commitment to creativity and customer satisfaction guarantees that every app we create not only meets but surpasses expectations, leading to growth and success in a constantly changing digital environment.

Frequently Asked Questions

What factors influence the cost of building an MVP app?

The cost of building an MVP app depends on factors like complexity, features, platform (iOS, Android, web), design requirements, and the development team’s location and experience.

Does the choice of technology stack affect the cost of developing an MVP app?

Yes, the technology stack (programming languages, frameworks, databases) can impact both initial development costs and long-term maintenance expenses.

What are some common features included in an MVP app?

Common features include user registration/authentication, basic UI/UX design, core functionalities essential to solving the target problem, minimal viable backend infrastructure, and basic analytics.