7 Steps for Building Cost-Efficient Minimum Viable Product

It is very hard to build any startup and come up with a unique product idea, develop the product, and introduce the product in the market with an innovative marketing strategy. This is a basic startup strategy. However, to make the product successful, it becomes necessary to understand the market needs and be sure that the product you are going to provide is willing to fulfill the customers’ needs. Hence, to save all the expenses in the initial phase only, the companies are likely to go for the minimum viable product (MVP).

With this, they can understand the customers’ needs precisely as well as, with their valuable feedback, the company can work over it and improve the product. Along with this, it will prove a great marketing strategy to generate awareness and need about the product in the market.

Let us learn about what is a Minimum Viable Product. But firstly, we would understand the exact meaning of ‘viable’ in terms of product and the company.

What does “viable” mean?

Viability stands for a service or product which delivers maximum value to the customer or user.

The main characteristic of developing a Minimum Viable Product is to ensure the maximum viability of the product. It is important for a startup to explain what unique they are offering with their product, instead of how they are offering. In other words, every user is always concerned about what a product does? instead of how it does it?

On average, about 60% of any product or software is not used at all. Hence, it becomes necessary for the company to analyze and meet customer demands by producing a viable product or software.

What is MVP or a Minimum Viable Product?

A Minimum Viable Product or MVP is a product or software having unique features or attributes to attract new customers and validate the idea in the initial phase of product development only.

Likewise, while developing the software and following the MVP Software Development process, the development team is likely to fetch user feedback as soon as possible to work over it and improve the product too.

In other words, we can define Minimum Viable Product as a part of other existing software or tools to test its viability before it enters into the development phase to be part of the product or the software. It might be possible that the viable product looks functional whereas it has been manually operated by the developers.

The three basic characteristics of a Minimum Viable Product are;

1. An MVP Software or Product should have a USP so that people will be willing to use it or buy it initially.
2. An MVP Software or Product should depict ample amounts of future benefits in order to retain the early users for a longer period of time.
3. During an MVP Software Development phase, it can easily provide a number of genuine feedbacks to guide the development in a better direction.

What is the Purpose of an MVP Development?

The first version of any software or product development is often termed as a Minimum Viable Product. This initial version of MVP software development allows the developer to collect and analyze maximum amounts of feedback from the customers with minimum efforts required.

There are a number of reasons why the company choose to develop and release a Minimum Viable Product initially;

1. This helps the development team to finish the product and release it as quickly as possible.
2. Testing an idea with the real-life audience before investing a good amount of budget in the full-fledged product development phase.
3. The MVP Development helps in learning about what affects or impacts the target market and what doesn’t for the Company.

MVP Development not only allows the company to validate the whole idea before building the final product. It also helps in minimizing the wastage of resources and time in case the product doesn’t seem feasible or gets a good response from its users.

A toolset can be modified or extended. It varies on the personal requirements of the customer.

Why do People use an Online Dating App?

1. About 49% of users look for online dating apps to find an exclusive romantic partner for themselves.
2. About 39% of users join these online dating apps to have something fun and interesting to do in their lives.
3. Most interestingly, about 29% of people join dating apps just in curiosity to see what the app is like.
4. Approx 23% of people join the online dating app to look out casually.
5. Apart from that, about 20% of users look for online dating apps to find non-exclusive romantic partners for themselves.
6. You will be surprised to learn that almost 19% of users join dating applications to boost their self-esteem.
7. Approx 19% of users look for dating applications just to build platonic, non-romantic connections.
8. Surprisingly, about 7% of users use this online dating platform to cheat on their significant other.

How much do you need to spend to build an MVP?

At first glance, the variation in MVP development seems insane. The MVP Software Development price may vary from $5,000 to $100,000. This much variation in the price depends upon the complexity of the app idea, the type of a module MVP you want to make, the team size is involved in it, and other factors as well.

Freelance MVP Software Development:

The MVP software not only is developed in-house, whereas freelance software developers can also be hired. Here, the expense could be less as compared to in-house software development. Hence, for a typical project a team of employees to be hired on a freelance basis and need to work over it to get all the things on a single platform. It might be tiring but could save some money as well.

In this regard, a full-stack developer needs to be hired on a freelance basis. It costs about $6000 per month and the specialist needs to be acquired during the entire project development.

A Designer needs to be hired, which costs about $5000 per month. This specialist should only be needed during the initial phase of the MVP Development.

After that, a Tester is required for the entire project and it might cost about $2500 per month.

Therefore, overall the monthly expense for the MVP Software Development will cost about $13,000 per month. And these prices may vary from one country to another. The average rate of freelancers in India on an hourly basis is about $50.

In-house MVP Software Development:

When a company is having an efficient team of its own, then they tend to go for in-house development of MVP Software. It provides easy interaction, transparency, and clear communication. However, providing quality remains the in-house developers’ responsibility.

It becomes much easier to coordinate with the in-house team and the success and quality of the product solely depend on the motivated developer. Despite all these advantages, the only disadvantage involved in it is the higher cost as compared to Freelance developers. A full-time developer also used to be paid for the holidays and the company had to bear those expenses as well.

A full-time full-stack developer costs about $9000 per month for an in-house company.

A Designer on a full-time basis costs about $3,500 per month.

And the Tester on a full-time basis costs about $4000 per month.

In in-house development, the company also requires assigning a Project Manager as well, and it will cost about $7000 per month.

Hence, the average expense of the company for in-house MVP Software Development will cost about $24,000 per month.

Hiring a Web Development Agency:

To look for a dedicated and quality web development agency would be a tedious task initially. But, once you get a reliable agency, now you can relax and just witness the MVP Software Development.

Then you don’t need to stress yourself to hire any specialist or dedicate a small team for this specific task. Here, you can save your time and make your staff work on other long-term projects.

These agencies might vary a lot in the overall charge, as agencies might charge on an hourly basis or monthly basis. It totally depends on the agency or on your negotiation skills too. Though it would be difficult to predict the charges right now you can go for a good agency as it is a good and feasible option for the company to get their Minimum Valuable Product developed easily and by following the deadline as well.

Conclusion

To look for a dedicated and quality web development agency would be a tedious task initially. But, once you get a reliable agency, now you can relax and just witness the MVP Software Development.

Then you don’t need to stress yourself to hire any specialist or dedicate a small team for this specific task. Here, you can save your time and make your staff work on other long-term projects.

These agencies might vary a lot in the overall charge, as agencies might charge on an hourly basis or monthly basis. It totally depends on the agency or on your negotiation skills too. Though it would be difficult to predict the charges right now you can go for a good agency as it is a good and feasible option for the company to get their Minimum Valuable Product developed easily and by following the deadline as well.