06 Jul 2017, Katarzyna Lorenc 06 Jul 2017, Katarzyna Lorenc Project Management How much does it cost to create a MVP? 301 views Do you have a unique app idea but you are not sure if it proves successful in the crowded mobile market? Or do you want to get the investors for your app but they are avoiding you as all you have is the idea in mind and some poor sketches? Maybe you’ve got a huge estimation for the app but even though you have only $20,000 or $30,000, you still want to give it a try without risking code’s poor quality? If any of these scenarios is true, the answer for your questions is MVP. Check what the MVP is and how much does it cost. What is Minimum Viable Product? An MVP (Minimum Viable Product) – is an application that has the required minimum capabilities to check it out on the market but it doesn’t contain any additional or secondary functions, only the core ones. According to Eric Ries, the co-founder of IMVU and one of the main apologists for the customer development theory, an MVP stands for MVP – a version of a new product which allows a team to collect the maximum amount of validated learning about customers with the least effort Click To Tweet MVP mobile app should not be mixed up with things like demo, prototype, or beta version. A demo is a demonstration version, always limited by time or functionality. A prototype is a very basic version of an app, which includes basic functionalities but lacks the graphic design and cannot be shown to final users. A beta version is an unfinished version of the product, which includes errors that are detected and corrected by users during the beta test. In comparison, with MVP you get a complete product, without any serious bugs or limitations, but with a minimum set of functions. Why MVP pays off? Why should I consider building an app which is not the final product, you may ask. Let’s consider some of its best advantages. 1. Finding investors Do you think that there are millions of investors in the world who are waiting to pay millions of dollars to get an equity in your app? If your idea is unique, maybe there are. But you have to first get their interest and that’s not something you achieve by sending them another wordy e-mail, without even mockups or wireframes. Investors want to really see the product, they are investing in. So a fully-working MVP can be a perfect opportunity to get their attention and multiple the money you invest in your app. 2. Testing and improving your idea Another extremely important function of an MVP! No idea is perfect from the very beginning. There are always things you haven’t thought of and issues that only a final user can see. Preparing an MVP version of your app is a perfect way to do the market research and decide whether your app needs improvements. 3. Little risk attached Sometimes you are not sure whether your potential users will really appreciate the app idea you have. Wouldn’t be good if you could just try it without risking too much money? Well, you can. With an MVP you don’t invest huge sums and you can always improve your idea or leave it if it doesn’t prove successful. 4. Initial income Some business models allow to earn money on an application from the very beginning, even though it is still an MVP. Wouldn’t it be great to create an app that you can make money on and improve it later, when you rise the funds? How much does MVP cost? So, we come to the most interesting question: How much does an MVP cost? You have probably seen the Next Web post showing how much the bare-bone MVP for the world’s hottest online & mobile companies cost and how much time it took, but just to remind: Twitter – $50,000 to $250,000 Instagram – $100,000 to $300,000 in 3-6 months Facebook – $500,000 in 9 months WhatsApp – $250,000 in 9 months Uber – $1M to $1.5M Pinterest – $120,000 in 4 months Shopify – $250,000 and $300,000 in 4-6 months Vine – $125,000 and $175,000 in 4 to 6 months Terrified? Don’t be! Fortunately, you don’t always have to have a $100,000 or $200,000 to create the first version of your mobile application. At Ready4S we believe that a simple mobile app MVP cost can start with around $20,000 and takes around 2 months. This price includes the workshop stage which always takes around 2 weeks and consists business analysis, strategy planning and wireframes, and the development process which takes another 8 weeks and covers both design and programming. Of course, it always depends on the time needed to develop it – you can see the most important factors below. What does the price depend on? Just like with the regular app development process leading to a final product, the price of an MVP depends on the number of hours spent on developing it and the price per development hour. They, however, depend on several factors shown below. => App type MVPs are as different as apps in general. Some ideas are very complex and so will be an MVP, some are quite simple. The most time-consuming and pricey elements of an application include: – Third-party API integrations, – Billing and payment integrations, – Database encryption, – Advanced admin panel with powerful analytics. => MVP launch stage At which stage will you take your application to the market? Do you need just one or two functionalities to show users your idea? Or should it be more complex because otherwise, users won’t get the whole concept? Will it be 30% or 80% of the final app? If you are not sure, ask your developer which functionalities should be the core, and which can be skipped in the MVP phase. => Software house or freelancer That’s true – freelancers are generally cheaper. But there are not many people in the world who can design app’s architecture, create its UX and UI and code an app – these are just too different skills for one person to master. Also, freelancers cannot always be trusted as they do multiple projects at the same time and in case of letting you down, it is almost impossible to make them take the responsibility. With software house, you have a whole team and a Project Manager to take care of your project. They also have a certain reputation to keep so they just cannot afford letting you down. => Part of the world Outsourcing overseas can be a good idea if you want more competitive software development prices that in the United States. Especially, Central and Eastern Europe can be good outsourcing destinations if you want to save some money but keep the high quality. How to start off with an MVP? OK, so you want to develop an MVP first. But where to begin? Follow the checklist below and you won’t be lost. 1. Formulate a hypothesis for testing Will people like the idea of sharing videos that disappear within 24 hours? Can common people give you a ride instead of taxi drivers? Is a service where you share only 140-character messages a good idea? Recognize these apps? Check your hypothesis basing on this scheme. 2. Choose the functionalities What functions should your app have? Write all of them down. Then, rate them and list them in terms of importance to the main goal of your app. Choose the ones which are really crucial to the main idea of your app. 3. Develop an MVP As mentioned above, it can take from 2 to 4 months if you hire a strong development team. 4. Launch and release your mobile app That’s the big day of your application. Put it in app stores, advertise it and check how users react to your idea. 5. Test your assumptions When you have the app released, record users’ feedback. Focus on discovering the key product strengths and bottlenecks. Then, process the obtained data, turn it into a new list of hypothesis and product features and implement changes into your app idea. Do you want to develop your own MVP? Fill in this form to get a free quote for your app idea. Subscribe to our newsletter and join +600 mobile geeks who receive best mobile-first news every week sign up Katarzyna Lorenc Marketing Specialist you might also like 01 Sep 2016, Mateusz Stanuszek Project Management 7 things you should do before publishing your app Project Management 01 Sep 2016, Mateusz Stanuszek 7 things you should do before publishing your app Before you will publish your ready app in an app store, there are some things you should remember. Read our checklist to better understand the process of publishing your app and make sure you didn't forget anything. 22 Jun 2017, Katarzyna Lorenc Project Management [Whitepaper] Why to choose a mobile app developer from Poland? Project Management 22 Jun 2017, Katarzyna Lorenc [Whitepaper] Why to choose a mobile app developer from Poland? Check why Google, IBM and Microsoft decided to outsource IT development to this Eastern European country. 25 Jan 2016, KATARZYNA WODZYŃSKA Project Management 5 things to make your app appear faster Project Management 25 Jan 2016, KATARZYNA WODZYŃSKA 5 things to make your app appear faster So you have another brilliant idea for mobile application? Great, that means it's half the battle! Now it's time for the next stage - putting your idea into effect.