Quick Summary: Businesses can save a lot of time, resources, and money when they build an MVP. Here is a complete guide that allows you to understand the 5-step MVP process, breaks down its development models, costs, and more. It also helps you pick the right approach as per your budget.

Usually, the development projects fail not because the ideas are bad or the team is not working well. The major reason is that the founders spend months building the wrong product, unaware of whether it fulfils the customer demand or not.

And that is what the MVP is designed for. If you are building a digital product and do not know who the real users are, you will carry out months of hard work, and if it does not work out, there is a wastage of money and resources.

Airbnb validated its idea with a simple website before writing a single line of complex code. Today, they have over 5.5 million hosts and more than 8 million listings. The MVP approach works if you know how to use it.

The first question the founder generally asks is about the cost, because it is such a critical factor. Here is a guide that gives you a clear picture and breakdown of what MVP development actually costs across different hiring models. It also allows you to make the right call for the budget and timeline.

Key Takeaways

An MVP validates your idea before you invest in a full build.
The 5-step process helps you to stay focused.
Freelancers suit tight budgets, and outsourcing suits growing teams.
MVP development costs range from $2,000 for a landing page to $50,000 for a full app.
Feedback, not assumptions, should drive every iteration.

The Process of Building an MVP

Follow these five steps to go from idea to a product your users actually want.

1. Product Description

At the very beginning of your MVP stage, you should identify a requirement as to why the product should endure. To ensure clarity, conduct surveys, because the more information you have, the more chances of success. Also, identify and evaluate your competitors’ offerings.

2. Product Classification

The next step here is to map the goals to the journey of the user. Understanding who the user is, what necessary action they would take and what outcomes they actually expect. It is vital to define the key features and set a realistic timeline for the release.

3. Product Implementation

So in step 2, you have already created a feature list. You need to decide what critical features to be added at the first build and which ones can be kept for later versions. Your MVP demonstrates the vital idea and nothing more and nothing less.

4. Product Launch

MVP isn't a rough draft. Rather, it is a functional and usable model that actually solves the problems you set out to fix. It is launched small, has a limited and targeted audience, so feedback is focused.

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5. Product Feedback

Feedback is what matters the most. Businesses can use it to validate the assumptions and identify gaps. It helps them guide what to build next. It means what users actually do, not what they say, should drive the iteration going forward.

How Much Does it Cost to Make an MVP for an App or Website?

Well, the choice of developers is one of the most important aspects, and the decision needs to be taken carefully. Here is a complete breakdown of every model with pros, cons and actual cost. Let’s have a look at all the options you have.

Option	Best For	Cost Range
Freelancer	Early-stage, tight budget	$12,000–$20,000
In-House	Long-term product teams	~$2,500/month
Local Agency	Funded startups, hands-off founders	$64,000+/month
Outsourcing	Startups need full teams at a lower cost	~$25,000/month

Option #1: Hiring A Freelancer

This way to get a project started is fast, affordable, and easy. Many freelance developers prefer working with entrepreneurs for software development, MVPs and prototypes.

You can find several freelance platforms to discover developers that can meet all your needs, such as freelancer.com or upwork.com. Write down a list of features, develop some mockups of how you want the site to look, along with the technology that will best fit your product.

Obviously, the developer will have his own opinions on technology and tools, so come prepared with a clear tech brief and your non-negotiables.

Pros: Developers are agile and swift, and you'll know the work is being done by the person you've hired, and the results will be upfront (not the case in outsourcing or agency scenarios).

Cons: Freelance developers can have commitment issues. They can leave the project if anything goes wrong, and nobody will be accountable for it. You cannot afford to take that big a risk in any MVP stage.

Another big disadvantage of this is coordination and communication, as you'll have to manage the project all by yourself.

Cost: A good freelancer will charge you by the hour (which is, of course, an added benefit). The cost of MVP development that a technically advanced developer will charge on average is $12,000-$20,000. Don't skip getting proposals from a few developers; you must necessarily like to compare the cost.

Option #2: Going In-House

In-house development lets the team be fully involved in the project, which makes it the first choice of many CXOs.

In an MVP development process, the in-house developers provide transparent relations and clear communication. Regardless, the quality is your liability. Your developers are more motivated by the success of the company, though.

Pros: With an in-house team, the work done can be immediately checked and improved. Also, having an in-house team is a long-term solution and association which reduces the costs of future projects.

Cons: The biggest drawback is considerably higher prices. When you start with a small budget, that may be a challenge. You must use an MVP cost calculator to analyze if this is a good option or not.

Cost: If you hire a full-stack developer with a designer, tester, and project manager, then the cost of MVP development would be around $2500 per month.

Option #3: Local App/Web Development Companies

If you are a fully funded start-up with a limited budget, this model may not be suitable for you. Hiring an MVP app/website development agency can turn out to be an expensive choice.

Pros: The price includes the cost of an entire development team. You will have a dedicated project manager, tester, designer, and other technical personnel. Not having to be a part of the project intensively is another advantage. The companies manage everything all by themself.

Cons: As mentioned above, the cost is the primary obstacle. Apart from this, there can be communication and expectancy issues.

Cost: The prices for a consultant total about $400 an hour. Considering a project completion may take up to 6 months, the cost of MVP development may shoot up to $96000 in total or $64,000 per month. If you have the budget, then this is the best option without a doubt.

Option #4: Outsourcing App or Website Development

For several start-ups with limited resources, outsourcing is a common alternative. It is a go-to option as it is much cheaper to hire any other local agency in comparison to other models.

Pros: It is cost-effective and opens up a pool of talented and skilled MVP app and website developers. Outsourcing accelerates growth as it fulfills needs and mitigates risks.

Cons: It involves two key obstacles, which are developing trust & developing a team. Those two problems can be, however, quickly solved. When recruiting prospective firms, make sure you have thoroughly investigated them.

Cost: The average price is $40 per hour. This means if you hire a dedicated development team of a minimum of four people (which is equivalent to setting up an ODC), the team will cost $160 per hour.

So, on average, you can assume that you will have to pay up to $25,000 per month to build an MVP app.

What are the MVP Stages?

In general, the cost of MVP development includes the costs of design, coding, project management, and testing. Some projects also need maintenance to be involved. Here's what each stage typically costs:

To make a prototype UX/UI, validate an idea, and create a pitch for an app for investors will cost $5, 000 – $10, 000.
An average price to create an app is from $15, 000 to $50, 000, depending on the complexity of the project.
The price for landing page development and project promotion is about $2,000.

In the end, you have to analyze what model and functionalities are necessary for your product, keeping the cost and quality in mind for your software development MVP.

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Concluding Thoughts

Building an MVP is not about cutting down costs; it is all about getting smart with resources and money. So it is all about learning and know you customers as fast as possible, before going for a full-scale development.

When the developer model seems right, there is a clear process and a realistic budget; you will just need to get it started. Rest follows from the user feedback. So don’t wait for the perfect. Just launch, learn and iterate.

Do you have an idea in mind and wish to build an MVP just like Airbnb did? You can reach out to us and our experts will help you launch your MVP.

Frequently Asked Questions

How long does it typically take to build an MVP?

Most MVPs generally take around 3 to 6 months. Rest depends on the complexity. If the app is simple, it can be built within 8-12 weeks, and if it's quite complex, the duration may get longer.

Should my MVP look polished, or is a rough version okay?

Should be intentional, not simply rough, because it is obviously going to reach customers. But they do expect usability. When the MVP is poorly designed, it can skew the feedback. The users may reject your design, but not the app idea.

How do I know when my MVP is ready to launch?

Once it is able to solve the customer problem or query clearly. If you continue to add features before the app launch, then it's most you have moved past MVP territory.

Can an MVP become the final product?

No, an MPV is simply a learning tool and allows you to improve the final product with its feedback. The successful product has additional features and looks very different from its MVP.