{"id":1570,"date":"2020-05-21T12:14:03","date_gmt":"2020-05-21T06:44:03","guid":{"rendered":"https:\/\/www.crayond.com\/blog\/?p=1570"},"modified":"2020-09-22T12:17:02","modified_gmt":"2020-09-22T06:47:02","slug":"cost-to-build-an-mvp","status":"publish","type":"post","link":"https:\/\/www.crayond.com\/blog\/cost-to-build-an-mvp\/","title":{"rendered":"Cost to build an MVP : A Short Guide"},"content":{"rendered":"\n<p>It takes a lot of hard work and energy into making a well-polished, finished product.<br><\/p>\n\n\n\n<p>This realization hits hard when an aspiring entrepreneur decides to transform their idea into a user-centric, wholesome product.<br><\/p>\n\n\n\n<p>And as they dig deep into the intricacies of product development, it becomes clear that they should not directly develop a full-fledged product.<br><\/p>\n\n\n\n<p>Instead, the wiser move is to develop an MVP and test the waters first.<br><\/p>\n\n\n\n<p>The obvious questions then, how would one develop an MVP, and how much would it cost?<br><\/p>\n\n\n\n<p>Not just the basics; we are here to give a clear understanding about how the cost to build an MVP is determined.<br><\/p>\n\n\n\n<p>Let\u2019s jump.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2>What is an MVP?<\/h2>\n\n\n\n<p>Simply put, an <a href=\"https:\/\/www.crayond.com\/blog\/minimum-viable-product\/\">MVP or a Minimum Viable Product<\/a> is the version that is basic but suitable for public release. It has the core functionality and addresses the important needs of the target users.<br><\/p>\n\n\n\n<p>For the MVP to impress users enough so that they start spending time on it, it would obviously need to have the following:<br><\/p>\n\n\n\n<ul><li>A UI that lets the user navigate through the MVP freely<\/li><li>The core features that solve the problem\/facilitate the task<\/li><li>A solid back-end architecture that can be molded if the idea gets positively validated<\/li><\/ul>\n\n\n\n<p>These three factors are crucial and intricate enough to demand a lot of developmental resources. As an aspiring entrepreneur, you might doubt the necessity of an MVP.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2>Why do you need an MVP?<\/h2>\n\n\n\n<p><\/p>\n\n\n\n<h3><strong>An MVP helps you validate your product idea<\/strong><\/h3>\n\n\n\n<p>As much as you would want to believe in your guts, relying on intuition for serious business matters is a huge risk.<br><\/p>\n\n\n\n<p>Especially when it is a new product that you are thinking about.<br><\/p>\n\n\n\n<p>Preliminary market research might tell you that your idea\/product fills a gap, addresses a vital missing link.<br><\/p>\n\n\n\n<p>Before jumping into the prospect of having satisfied users\u2019 needs and built a successful product, you would need to consider a few things.<br><\/p>\n\n\n\n<p>Firstly, if your idea, your version of the solution for the users is actually the right one.<br><\/p>\n\n\n\n<p>Secondly, if your target users are really interested in the type of product that you envision.<br><\/p>\n\n\n\n<p>You might plan for a full-fledged product when all they need is an applet that addresses their needs immediately.<br><\/p>\n\n\n\n<p>An MVP helps you validate your market research and your product idea concretely.<br><\/p>\n\n\n\n<p>The MVP goes into the hands of your target users, they perform a few tasks, and in one way or the other, you get your necessary feedback.<br><\/p>\n\n\n\n<p>It is always better to know if the path that you are choosing really leads to your desired destination.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" width=\"1024\" height=\"576\" src=\"https:\/\/www.crayond.com\/blog\/wp-content\/uploads\/2020\/06\/01Cost-to-building-MVP-1024x576.jpg\" alt=\"\" class=\"wp-image-1651\" srcset=\"https:\/\/www.crayond.com\/blog\/wp-content\/uploads\/2020\/06\/01Cost-to-building-MVP-1024x576.jpg 1024w, https:\/\/www.crayond.com\/blog\/wp-content\/uploads\/2020\/06\/01Cost-to-building-MVP-300x169.jpg 300w, https:\/\/www.crayond.com\/blog\/wp-content\/uploads\/2020\/06\/01Cost-to-building-MVP-768x432.jpg 768w, https:\/\/www.crayond.com\/blog\/wp-content\/uploads\/2020\/06\/01Cost-to-building-MVP-370x208.jpg 370w, https:\/\/www.crayond.com\/blog\/wp-content\/uploads\/2020\/06\/01Cost-to-building-MVP-270x152.jpg 270w, https:\/\/www.crayond.com\/blog\/wp-content\/uploads\/2020\/06\/01Cost-to-building-MVP-570x320.jpg 570w, https:\/\/www.crayond.com\/blog\/wp-content\/uploads\/2020\/06\/01Cost-to-building-MVP-740x416.jpg 740w, https:\/\/www.crayond.com\/blog\/wp-content\/uploads\/2020\/06\/01Cost-to-building-MVP.jpg 1366w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<h3><strong>An MVP can help you reach Product\/Market fit faster.<\/strong><\/h3>\n\n\n\n<p>Product\/Market fit is the metric that shows you how well your product addresses the needs of the market.<br><\/p>\n\n\n\n<p>Your product idea might have passed the first round of testing: validation.<br><\/p>\n\n\n\n<p>But a successful product is much more than that.&nbsp;<br><\/p>\n\n\n\n<p>Product\/Market fit shows you exactly how well the users appreciate your product and which features appeal the most.<br><\/p>\n\n\n\n<p>And which features don\u2019t.<br><\/p>\n\n\n\n<p>As a matter of fact, the better the <a href=\"https:\/\/www.crayond.com\/blog\/product-market-fit\/\">product\/market fit<\/a> is, the faster the user base adopts the product.<br><\/p>\n\n\n\n<p>Instead of launching a complete product and then slowly figuring out the wrong pieces and fixing them, you could release an MVP.<br><\/p>\n\n\n\n<p>And get the same insights in a faster, more agile fashion.<br><\/p>\n\n\n\n<p>Since MVP and their consecutive versions are light-weight and focused, it becomes easier to build multiple iterations, thus improving faster.<br><\/p>\n\n\n\n<h3><strong>An MVP helps you get better funding opportunities<\/strong><\/h3>\n\n\n\n<p>What is better than a half-cooked meal?<br><\/p>\n\n\n\n<p>A fully cooked one, complete with all the garnishes.<br><\/p>\n\n\n\n<p>When you go for investor meetings and pitch your product\/idea to get funded, what do you think would fare better: a prototype or a functional MVP?<br><\/p>\n\n\n\n<p>The answer is obvious.<br><\/p>\n\n\n\n<p>And the advantages are multiple.<br><\/p>\n\n\n\n<p>It makes convincing the investors and explaining the core features and the unique selling point of the product\/idea much easier.<br><\/p>\n\n\n\n<p>Because the MVP would be right in front of them, available for demonstration and quenching doubt.<br><\/p>\n\n\n\n<p>Any gaps in understanding what your product does would be minimal, making it easier to sway the investor\u2019s minds to your favor.<\/p>\n\n\n\n<p>Further, you establish that you are highly determined because you already have an MVP in hand.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" width=\"1024\" height=\"576\" src=\"https:\/\/www.crayond.com\/blog\/wp-content\/uploads\/2020\/06\/02Cost-to-building-MVP-1024x576.jpg\" alt=\"\" class=\"wp-image-1652\" srcset=\"https:\/\/www.crayond.com\/blog\/wp-content\/uploads\/2020\/06\/02Cost-to-building-MVP-1024x576.jpg 1024w, https:\/\/www.crayond.com\/blog\/wp-content\/uploads\/2020\/06\/02Cost-to-building-MVP-300x169.jpg 300w, https:\/\/www.crayond.com\/blog\/wp-content\/uploads\/2020\/06\/02Cost-to-building-MVP-768x432.jpg 768w, https:\/\/www.crayond.com\/blog\/wp-content\/uploads\/2020\/06\/02Cost-to-building-MVP-370x208.jpg 370w, https:\/\/www.crayond.com\/blog\/wp-content\/uploads\/2020\/06\/02Cost-to-building-MVP-270x152.jpg 270w, https:\/\/www.crayond.com\/blog\/wp-content\/uploads\/2020\/06\/02Cost-to-building-MVP-570x320.jpg 570w, https:\/\/www.crayond.com\/blog\/wp-content\/uploads\/2020\/06\/02Cost-to-building-MVP-740x416.jpg 740w, https:\/\/www.crayond.com\/blog\/wp-content\/uploads\/2020\/06\/02Cost-to-building-MVP.jpg 1366w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<h2>Factors that affect the cost of building an MVP<\/h2>\n\n\n\n<p>Now that the advantages of building an MVP are clear, let\u2019s jump into the crux.&nbsp;<br><\/p>\n\n\n\n<p>A smooth UI and the core features of your product are the essentials of your MVP. But the other factors that vary from one product idea to another are:<br><\/p>\n\n\n\n<h3><strong>Type of product\/service<\/strong><\/h3>\n\n\n\n<p>This is the biggest factor that decides how much your MVP\u2019s development will cost.<br><\/p>\n\n\n\n<p>Building a CRM is a completely different task than building a billing tool.<br><\/p>\n\n\n\n<p>Or maybe your product is something that enhances navigation in some way.<br><\/p>\n\n\n\n<p>Different categories of applications utilize different types of tech stacks.<br><\/p>\n\n\n\n<p>A technology stack is the set of programming languages\/platforms that would enable your product.<br><\/p>\n\n\n\n<p>Simple examples would be Javascript, CSS, and HTML for a front-end tech stack and SQL, Java, and .NET for a back-end tech stack.<br><\/p>\n\n\n\n<p>Based on your requirement and product vision, you would have to hire or outsource programmers that specialize each of their stacks.<br><\/p>\n\n\n\n<p>The more ambitious your product is, the more number of tech stacks it would require.&nbsp;<br><\/p>\n\n\n\n<p>But there is something beyond just the number of tech stacks that your MVP would need.<br><\/p>\n\n\n\n<p>The degree of implementation.<br><\/p>\n\n\n\n<p>For simple tools, services, and applets, the technology implementation is limited to just the few features.<br><\/p>\n\n\n\n<p>But for larger products with multiple features and possibilities, the implementation gets deeper.<br><\/p>\n\n\n\n<p>And that naturally means more cost that you\u2019d have to spend to build your product or MVP.<br><\/p>\n\n\n\n<h3><strong>Number of features<\/strong><\/h3>\n\n\n\n<p>Increased requirement of implementation increases the cost of your MVP.<br><\/p>\n\n\n\n<p>But depending on why you decide to build the MVP, you could decide to build just a small set of the core features.<br><\/p>\n\n\n\n<p>If your plan is to validate your product idea, you can ask for only the most crucial parts to be built.<br><\/p>\n\n\n\n<p>If your plan is to better achieve product\/market fit, then you can get the features that already appeal to the users to be iterated again for testing.<br><\/p>\n\n\n\n<p>Simply put, the more number of features you decide to build, the more time it would take.<br><\/p>\n\n\n\n<p>And the more money you\u2019d have to spend.<br><\/p>\n\n\n\n<p>You could possibly have more features built in less time but that would obviously affect the quality of your MVP.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h3><strong>How polished you want your MVP to be<\/strong><\/h3>\n\n\n\n<p>Features aside, an elegant UI takes its own time to be developed as well.<br><\/p>\n\n\n\n<p>As simple as it might look, each aspect of a user interface has to be brainstormed upon, researched, tested, and iterated before it can fit well into the overall user journey.<br><\/p>\n\n\n\n<p>It is no secret that a fine UI and a well-tuned UX would attract the users and keep them engaged on your platform.<br><\/p>\n\n\n\n<p>If you want more users to stay on your product, to use it to perform tasks and solve problems in their everyday lives, then you would need a squeaky clean UX.<br><\/p>\n\n\n\n<p>And you\u2019d have to pay for that as well.<br><\/p>\n\n\n\n<p>However, depending on your reasons for getting an MVP built, you could probably tone the developmental efforts on the UI to save some money.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" width=\"1024\" height=\"576\" src=\"https:\/\/www.crayond.com\/blog\/wp-content\/uploads\/2020\/06\/04Cost-to-building-MVP-1024x576.jpg\" alt=\"\" class=\"wp-image-1654\" srcset=\"https:\/\/www.crayond.com\/blog\/wp-content\/uploads\/2020\/06\/04Cost-to-building-MVP-1024x576.jpg 1024w, https:\/\/www.crayond.com\/blog\/wp-content\/uploads\/2020\/06\/04Cost-to-building-MVP-300x169.jpg 300w, https:\/\/www.crayond.com\/blog\/wp-content\/uploads\/2020\/06\/04Cost-to-building-MVP-768x432.jpg 768w, https:\/\/www.crayond.com\/blog\/wp-content\/uploads\/2020\/06\/04Cost-to-building-MVP-370x208.jpg 370w, https:\/\/www.crayond.com\/blog\/wp-content\/uploads\/2020\/06\/04Cost-to-building-MVP-270x152.jpg 270w, https:\/\/www.crayond.com\/blog\/wp-content\/uploads\/2020\/06\/04Cost-to-building-MVP-570x320.jpg 570w, https:\/\/www.crayond.com\/blog\/wp-content\/uploads\/2020\/06\/04Cost-to-building-MVP-740x416.jpg 740w, https:\/\/www.crayond.com\/blog\/wp-content\/uploads\/2020\/06\/04Cost-to-building-MVP.jpg 1366w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<h3><strong>Scalability<\/strong><\/h3>\n\n\n\n<p><\/p>\n\n\n\n<p>A well-built MVP always has the potential to scale into a fully-fledged product.<br><\/p>\n\n\n\n<p>Because, essentially, an MVP is nothing but the product stripped to its core.<br><\/p>\n\n\n\n<p>Scalability adds up its own share of the developmental cost, however.<br><\/p>\n\n\n\n<p>Choosing the architecture, planning it well, implementing it so that it can grow and scale as more code and features are added later are not easy tasks.<br><\/p>\n\n\n\n<p>While you could decide on toning it down on the scalability, if you are really passionate about building a product, you should invest in this aspect.<br><\/p>\n\n\n\n<p>Compared to building an entire product, this is a smaller risk that can result in a huge payback if your product idea gets validated positively.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" width=\"1024\" height=\"576\" src=\"https:\/\/www.crayond.com\/blog\/wp-content\/uploads\/2020\/06\/03Cost-to-building-MVP-1024x576.jpg\" alt=\"\" class=\"wp-image-1653\" srcset=\"https:\/\/www.crayond.com\/blog\/wp-content\/uploads\/2020\/06\/03Cost-to-building-MVP-1024x576.jpg 1024w, https:\/\/www.crayond.com\/blog\/wp-content\/uploads\/2020\/06\/03Cost-to-building-MVP-300x169.jpg 300w, https:\/\/www.crayond.com\/blog\/wp-content\/uploads\/2020\/06\/03Cost-to-building-MVP-768x432.jpg 768w, https:\/\/www.crayond.com\/blog\/wp-content\/uploads\/2020\/06\/03Cost-to-building-MVP-370x208.jpg 370w, https:\/\/www.crayond.com\/blog\/wp-content\/uploads\/2020\/06\/03Cost-to-building-MVP-270x152.jpg 270w, https:\/\/www.crayond.com\/blog\/wp-content\/uploads\/2020\/06\/03Cost-to-building-MVP-570x320.jpg 570w, https:\/\/www.crayond.com\/blog\/wp-content\/uploads\/2020\/06\/03Cost-to-building-MVP-740x416.jpg 740w, https:\/\/www.crayond.com\/blog\/wp-content\/uploads\/2020\/06\/03Cost-to-building-MVP.jpg 1366w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<h3><strong>Who would build your MVP<\/strong><\/h3>\n\n\n\n<p><\/p>\n\n\n\n<p>This is the second biggest factor that decides how much your MVP would cost. Your paths to building a solid MVP would be:&nbsp;<br><\/p>\n\n\n\n<ol><li>Finding the right talent and working with them on your own<\/li><li>Hiring freelancers<\/li><li>Outsourcing the development of your MVP to a digital product agency<\/li><\/ol>\n\n\n\n<p>Cost-wise, it is risky as well as highly time-consuming to hire the right talent, align them to your goals, and then begin to develop your MVP.<br><\/p>\n\n\n\n<p>On the flip side, you could avoid all of those and instead choose to work with experienced freelancers. You would probably save time as well as a lot of money.<br><\/p>\n\n\n\n<p>But, building a rapport with freelancers that lets you trust them would be a hassle.<br><\/p>\n\n\n\n<p>Also, getting them to produce exactly what you want would be difficult.<br><\/p>\n\n\n\n<p>Which means, you would be left to consider the last option: Taking your product idea to a digital product agency to get it developed.<br><\/p>\n\n\n\n<h2>Digital Product Agencies and MVP<\/h2>\n\n\n\n<p>As an aspiring entrepreneur, it might seem like a bit of a risk to hand your product idea over to a collective that you hardly know about.<br><\/p>\n\n\n\n<p>But a <a href=\"https:\/\/www.crayond.com\/blog\/what-is-a-digital-product-agency\/\">digital product agency<\/a> combines the best of both worlds: freelancers and in-house developers.<br><\/p>\n\n\n\n<p>You get to avoid the hassle of finding and making a cohesive whole out of all the talented people.<br><\/p>\n\n\n\n<p>And you will not need to worry about this collective not producing exactly what you need.<br><\/p>\n\n\n\n<p>Most digital product agencies have a lot of experience and stellar products under their belt.<br><\/p>\n\n\n\n<p>Plus, the good ones run like a well-oiled machine. You put in your demands and you get the result.<br><\/p>\n\n\n\n<p>For budding entrepreneurs, digital product agencies also pose the advantage of accelerated learning.&nbsp;<br><\/p>\n\n\n\n<p>You get to see your idea transform into a product in real-time, and also get to fill your knowledge gaps through this process.<br><\/p>\n\n\n\n<p>Additionally, professional digital product agencies that take pride in building products efficiently always implement a product roadmap.<br><\/p>\n\n\n\n<p>Meaning, your cost of building an MVP gets broken down in terms of milestones.<br><\/p>\n\n\n\n<p>This milestone pricing gives you a clear picture of what you\u2019d need to spend in order to get your envisioned result.<br><\/p>\n\n\n\n<p>And since the MVP is broken down as milestones, you can choose to simplify or skip a few to fit your budget.<br><\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" width=\"1024\" height=\"576\" src=\"https:\/\/www.crayond.com\/blog\/wp-content\/uploads\/2020\/06\/05Cost-to-building-MVP-1024x576.jpg\" alt=\"\" class=\"wp-image-1655\" srcset=\"https:\/\/www.crayond.com\/blog\/wp-content\/uploads\/2020\/06\/05Cost-to-building-MVP-1024x576.jpg 1024w, https:\/\/www.crayond.com\/blog\/wp-content\/uploads\/2020\/06\/05Cost-to-building-MVP-300x169.jpg 300w, https:\/\/www.crayond.com\/blog\/wp-content\/uploads\/2020\/06\/05Cost-to-building-MVP-768x432.jpg 768w, https:\/\/www.crayond.com\/blog\/wp-content\/uploads\/2020\/06\/05Cost-to-building-MVP-370x208.jpg 370w, https:\/\/www.crayond.com\/blog\/wp-content\/uploads\/2020\/06\/05Cost-to-building-MVP-270x152.jpg 270w, https:\/\/www.crayond.com\/blog\/wp-content\/uploads\/2020\/06\/05Cost-to-building-MVP-570x320.jpg 570w, https:\/\/www.crayond.com\/blog\/wp-content\/uploads\/2020\/06\/05Cost-to-building-MVP-740x416.jpg 740w, https:\/\/www.crayond.com\/blog\/wp-content\/uploads\/2020\/06\/05Cost-to-building-MVP.jpg 1366w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<h2>Bottom-line<\/h2>\n\n\n\n<p>Having a product idea that possibly addresses a crowd\u2019s problems is just the first step.<br><\/p>\n\n\n\n<p>With your aspirations raging higher, as an entrepreneur, you would want to move on to the next step.<br><\/p>\n\n\n\n<p>Making the product idea a reality.<br><\/p>\n\n\n\n<p>And that is when you stumble on the concept of an MVP and all of its advantages.<br><\/p>\n\n\n\n<p>To get an MVP done efficiently and under a cost that seems justified, choosing the safer, tested route of hiring a digital product agency is your best bet.<br><\/p>\n\n\n\n<p>Your product idea would get a home where it would thrive and grow into the ambitious version that you want it to be.<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>It takes a lot of hard work and energy into making a well-polished, finished product. This realization hits hard when an aspiring entrepreneur decides to transform their idea into a user-centric, wholesome product. And as they dig deep into the intricacies of product development, it becomes clear that they should not directly develop a full-fledged [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":1592,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":""},"categories":[15],"tags":[],"_links":{"self":[{"href":"https:\/\/www.crayond.com\/blog\/wp-json\/wp\/v2\/posts\/1570"}],"collection":[{"href":"https:\/\/www.crayond.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.crayond.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.crayond.com\/blog\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/www.crayond.com\/blog\/wp-json\/wp\/v2\/comments?post=1570"}],"version-history":[{"count":6,"href":"https:\/\/www.crayond.com\/blog\/wp-json\/wp\/v2\/posts\/1570\/revisions"}],"predecessor-version":[{"id":1656,"href":"https:\/\/www.crayond.com\/blog\/wp-json\/wp\/v2\/posts\/1570\/revisions\/1656"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.crayond.com\/blog\/wp-json\/wp\/v2\/media\/1592"}],"wp:attachment":[{"href":"https:\/\/www.crayond.com\/blog\/wp-json\/wp\/v2\/media?parent=1570"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.crayond.com\/blog\/wp-json\/wp\/v2\/categories?post=1570"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.crayond.com\/blog\/wp-json\/wp\/v2\/tags?post=1570"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}