You’ve probably heard that it isn’t necessarily to be rich as Croesus if the idea of becoming a digital entrepreneur doesn’t let you sleep at night. So many success stories, when former students find a cute idea and turn into millionaires just overnight, are teasing and intriguing. But your common sense says that starting a business with empty pockets and reaching something noticeable is an exception, not a rule. The more fruitful strategy is to make a research, define what exactly you expect to launch and find out the cost to build an MVP.
When your budget is sufficient for implementation of an undertaking on an entire scale, you’ll feel more confident and you’ll get more space for flexibility. How much does it cost to build an MVP? This tricky question is masterfully resolved by Purrweb studio: the guys know all facets of the issue, having hundreds of designed MVP under the belt.
Why is there a sensitive difference in pricing on MVP?
$10,000, $28,000, $40,000 etc. In response to your quote about the cost to build an MVP, different studios name miscellaneous numbers that make you feel confused and perplexed, as it seems impossible to see a fair picture. No one wants to overpay or to buy something at the lowest price and then discover there’s a necessity to pay for it twice. Why does it usually happen?
The total cost to build an MVP bore as a result of multiplying the time required for a project by the cost of work per hour accepted in the company. Pay attention on the factors which play a leading role in pricing:
- Different amounts of time required for teams to perform even the same set of features.
- Different rates per work hour are accepted in diverse agencies.
By juggling the depicted parameters, the cost to build an MVP can be expanded or reduced sensitively.
Here such characteristics of the software agency enter the game: experience, domain of expertise, technology stack etc.
Pay attention to the noticeable fact: productivity isn’t homogeneous, and the team with blazing deliverables in the background usually spends less time than a newbie. That incoincidence entails a decrease of working hours the experienced guys need to deliver a product. So, sometimes you can win in the cost to build an MVP, entrusting the task to an actually qualified team, even if their work hours cost slightly more.
Which factors impact on an MVP estimation?
The final score of hours the project requires is determined by its type and quantity and complexity of features to be performed. To build a single-featured tracker for stand-up paddleboarding lovers and to perform a huge e-commerce platform are actually two different stories. And the time they require for implementation can vary extremely as well as the level of qualification the team should have to be able to manage the technical specifications. In the second case the founder expects to receive at least four versions of the product: the app for buyers and the app for sellers. Add to this necessity to split between various platforms, and you’ll see how tricky the task is. Rare experts also contribute to the increasing of the total cost to build an MVP: creating something in blockchain will take a more impressive sum than if you prefer other technologies.
Intending to deal with a balanced cost to build an MVP, search for an agency which demonstrates:
- A proven track in the industry. The more products guys have performed, the more ways to cut corners they know.
- Flexible technology stack. For example, the Purrweb team loves React Native as it equips them the power to perform MVP for various devices simultaneously. As for startup founders, they are happy to receive multi-platform solutions for less budget.
- All-around services for MVP: UI/UX design, development, quality assurance. It’s convenient to have a ready-for-launch product and professional support in case any bugs will be detected.
How to get an adequate estimation of MVP creation?
To name the exact cost to build an MVP is often impossible as there are many variables to enter the game in the process. But you can get an approximate estimation, if you define exactly the set of features you need and make a quote in diverse agencies to get assessment in terms of times and additional fees. Comparing the results, it’s possible to calculate the average cost to build an MVP you plan to realize. But be aware: it’s hard to assess directly the quality of creative work. For example, the UI/UX design services can cost $5000 in both agencies, but in terms of attractiveness, convenience and intuition guided navigation these can be two opposite results.
Which are the recipes to optimize cost to build an MVP?
Obviously, there two ways to decrease cost to build an MVP:
- reduce the quantity of working hours it requires,
- find the most attractive price for these kinds of services.
The thing that serves as an effective tool in the first case is meticulous research at the preliminary stage and adequate planning.
Exclude impossible leave
Of course, it’s hard to define which features to include and which ones to exclude at the beginning stage. But if you intend to optimize
cost to build an MVP, try to get rid of all nice-to-have functions at the start. Remember, your target isn’t decorating an MVP with pleasant features, your target is to start communication with potential customers via your platform, get first real feedback and earn money.
Of course, if you’re planning to deliver an online shop where the highlight is a rating system based on qualitative video reviews, you can’t exclude this feature from core functions. But in other cases video reviews are an excessive function for initial work of an enterprise. Ask yourself a question: can my product work without it? If yes, drop this.
Location and pricing policy
As for hourly rates, it’s a common fact that US based companies charge two or three times more than their colleagues from Europe or Asia. Searching for balance between price and quality, consider software agencies from Eastern Europe. Thanks to offshore outsourcing, entrepreneurs save a half of the budget and even more, when cooperating with the top rated firms in the mentioned location. For example, the average cost of MVP development services at Purrweb is about $25,000 in accordance with $50 rates or less per an hour of work.
The company which has $100 or $150 hourly rates will charge respectively more.
Now, we hope you can effectively navigate the leverage related to pricing in MVP development, and by applying these tips to receive a vision of better budgeting. And bear in mind: your aim isn’t to find the lowest price, your aim should be to get top-quality services for an adequate price. Don’t try to be a miser who pays twice.
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