How Much Does it Cost to Build an MVP App in 2024?

We all know that success does not come in a single day. This is especially true when developing mobile apps for a startup company. Even large enterprises consider an iterative approach to developing their apps and websites. 

Bringing your digital vision to life could be super rewarding. However, you need a careful and continuous iterative approach to make it a financial success. Many business owners fail to capitalize on their ideas because of early mistakes. A study shows that 42% of startups fail because of a lack of demand in the market. 

That’s where MVP development comes into the picture. It is an iterative methodology that helps startups and other enterprises adopt a sustainable product development approach. MVP software development also validates a product’s scope and market demand. 

Businesses prefer this approach before making significant investments in full-scale development. This blog is the perfect place to learn everything about MVP development and the cost of building an MVP app in 2024. We will also understand why hiring a mobile app development company for MVP development is more sensible. 

What is MVP? 

Before we discuss development costs, let’s help you learn from scratch about MVP. The term stands for Minimum Viable Product. It is the most basic edition of the product an organization is planning to develop. 

Assume it as the skeleton of a fully working living organism. It’s not fully ready, but it’s sufficient to complete the core job. Most startup businesses consider an MVP Development Company to showcase what they’re all about to their audience. The idea is to check the depth of the ocean without diving deep. 

For example, a business may develop an ideal social e-commerce platform. The firm would prefer to start with the essential features instead of directly launching a full-scale platform with jingles and hype. This demo version of your product helps you gather feedback, evaluate metrics, and find the scope of improvements or issues in the early stage. 

What is an App Prototype? 

An app prototype helps verify features with a real-world product. Many use the term “POC” to indicate prototypes. However, we cannot use the term interchangeably since they are not the same thing. Prototyping is all about building a hypothetical product instead of conducting technical tests. 

Businesses focus on including core features, UI, and integrations. Prototyping is only valid for internal testing. You cannot show a prototype to the actual users. 

Alpha Version 

An alpha version is a product’s first release. Its major goal is to collect feedback from various internal stakeholders. A product could have multiple alpha releases. A continuous approach always helps improve the product for the beta launch.  

Beta Version 

The beta version of the app is available for testing by early adopters. This edition helps businesses prepare for bug fixes and app store releases and meets user expectations.  

Purpose of MVP Software Development 

Different businesses may have distinctive reasons behind developing an MVP for startup apps. However, these are some common objectives; 

Gather Feedback 

Businesses need genuine feedback to make their products work. This is the biggest reason behind MVP development. The feedback helps make considerable improvements based on real opinions instead of vague hypotheses. 

They can make strategic decisions to improve the final product’s functionalities, UI/UX, security measures, and other relevant aspects. 

Save Up Resources 

MVP development helps you understand how ready you are to penetrate the market. You can quickly adjust the final product by analyzing the results instead of launching it at once. 

Ignoring MVPs might waste your months of work and money, resulting in a total disaster. You must acquire proper validation of your idea and its execution before the market launch. Hire a trustworthy mobile app development company to complete the job efficiently. 

Reduce Time to Market 

Any app development project has a certain timeframe for release. The development team has to go through multiple stages to complete the final polished product. In contrast, MVP reduces this time by a huge margin and saves you time. You get a basic product with core features within 1-3 months. It could be an amazing strategy to gain a competitive advantage. 

Gather Investments 

Many businesses also use MVP development to raise funds. Otherwise, running a digital product could be financially challenging without continuous investments. It could be a great idea to consider building an MVP and showcase it to investors to ensure future cash flow to sustain the project. 

Risk Mitigation

Time is money, and money is time. Both are interrelated. You cannot waste months or a year without having your project or idea validated. MVP development is all about testing the waters before full-scale execution. It lets you test the core functionality without blowing out your entire budget. 

User-Centric Approach 

MVP development prioritizes users over everything. It helps you understand their wants and desires for your digital product. Businesses take this approach to build strong customer relationships apart from growth and success. 

Factors That Impact MVP Development 

The development cost of an MVP isn’t fixed and relies on multiple factors. It isn’t easy to take a one-size-fits-all approach while developing an MVP. 

The Complexity of the Application 

The idea of developing an MVP involves having limited features. However, the feature list could be different from business to business. The complexity of the app could hugely impact the MVP development price. 

For example, a real estate app must focus on listing properties, booking management, and managing user profiles. Considering the basic nature of this application, the MVP would be simple, and development costs would stay under budget. 

The Target Audience 

Most companies follow two different business approaches: B2B and B2C. The MVP development cost is hugely different for each solution. 

CRM, ERP, or financial management software usually targets a more specialized audience. However, developing an MVP for startup apps running in a B2B environment is much more expensive. 

These B2B solutions are more complex and highlight various features and security mechanisms, contributing to the overall MVP development cost. 

In contrast, maintain-stream B2C apps like social media platforms, e-commerce apps, or games have common features and a more general audience. Fulfilling the needs of a broader market is much easier than fulfilling those of a niche segment. B2C solutions are usually less expensive to develop and have simpler functionality. 

Platform Availability 

Your digital solution will be available on specific platforms. Choosing web, Android, or iOS affects the cost of MVP development. Developing a dedicated mobile application is more expensive than a web app. You should hire iOS app developer to target high income groups. 

Mobile applications feature more advanced features and security measures. When you hire mobile app developers, you gain access to multiple tools and technology stacks to play with. The MVP app development company has to create a balance between functionalities and devices’ limited capabilities. 

In contrast, you can use content management systems and build web applications without much technical expertise. However, developing embedded applications is much higher than web app development. It would help if you bore the cost of hardware and firmware with complex customization and integration. 

Technologies and Tools Necessary for Development 

Any digital application requires robust front-end and back-end development. However, we cannot forget the importance of database development, which impacts the complexity and necessity of diverse skill sets. 

For example, React or Vue.js would be less expensive front-end frameworks than less common or complicated ones. The logic applies to back-end and database development. You will spend more money personalizing existing technologies or developing custom solutions from scratch. 

For example, an IoT digital solution would rely entirely on a cloud infrastructure. These solutions generate huge volumes of data that require proper processing, storage, and management. YOu must set up an optimal infrastructure to manage your MVP development costs.  

Industry Type 

MVP software development isn’t the same for every industry. Some sectors, especially finance and healthcare, have specific compliance requirements. To operate in that industry, the development team must meet these laws and regulations. 

This additional effort translates into an extensive planning stage that requires more investment. Software solutions for regulated industries also need strong data management and security approaches. You also need to consider the cost of certification for the specific industry. 

Moreover, MVP software development for a highly competitive industry will be more expensive. A business must invest more time and resources in research and development, which is necessary to stand out in a saturated market. Continue reading this MVP app development guide to learn more about the development costs and process. 

Project Size 

Development companies classify MVP development projects into different categories depending on the scope of work. The amount of work also impacts the MVP development cost. 

Small Projects 

These projects have limited scope and complexity and require less development time. An MVP development company can help you complete these products within three months. Your development team doesn’t have to learn new technology or have a specific skill set. However, small projects won’t allow tweaking or tuning an existing solution. 

Medium Projects 

These projects usually take three to six months to complete. The mobile app development company must have well-defined deliverables and a robust process to build a standalone solution. You might need to take additional measures to develop such products. 

Large Scale Projects 

Your development team may need to spend six months to several years developing enterprise-grade projects. It requires extensive integration with systems, security tools, and database components. 

The MVP development company will require rigorous error handling, security, and logging features. Risks are also higher with large-scale projects. 

Integration with Third-Party Systems 

Almost no software works in isolation. You will need to integrate different enterprise systems and third-party services. For example, an online food delivery application relies on mapping software, a payment gateway, and a weather app. 

App development costs automatically increase with the number and complexity of integrations. Many mobile app development companies use easy-to-use APIs instead of legacy enterprise systems to save money and effort. 

Also Read: What Features Make Flutter The Best Option for MVP Development

How to Manage Your MVP Software Development Budget? 

As a leading MVP development company, we know how to keep your development costs under control. Here are some tips; 

Carefully Analyze the Scope of Work

To estimate the cost accurately, you must understand the full scope of your MVP. A broader scope will naturally require higher development costs. For example, the MVP development cost will increase if you are developing an app for multiple platforms. In such cases, it is vital to prioritize essential features instead of extra fancy stuff. 

Decide Between In-House and Outsourcing Development 

Building an in-house development team requires significant investment. It is an unreliable approach, especially when your project is a one-time job. You must bear operating costs, such as wages, benefits, and infrastructure. 

Outsourcing your project to a company that provides MVP development services is a sensible decision. It only requires you to pay for the specific services you need. There are no ongoing overheads or liabilities with this approach. 

Learn About the Hourly Rates of MVP Development 

A development team’s hourly rates will differ depending on their skillset and location. You can hire experienced developers to complete the job faster, but this requires a higher investment. We recommend finding the right balance between cost and expertise. 

Consider the Contract Type 

Mobile app development teams usually work on T&M and fixed-price contracts. The time and materials approach considers development hours spent on a project. You get higher adaptability but don’t get predictable final costs. 

A fixed-price model is more suitable for developing a project within a certain time and budget. However, it limits flexibility for project changes. 

Analyze Different Geographical Locations 

The location of your development team can hugely impact the mobile app design process and costs. Countries with higher living costs will also have higher development costs. It’s better to select locations with lower average incomes to save money on MVP development.

However, you must be skilled enough to mitigate issues such as time zone differences, language barriers, and remote work constraints. 

Post MVP Development Costs 

Many businesses undermine the MVP post-development process. They don’t consider these costs and may end up in financial trouble. You must be ready to invest in post-launch activities. 

Marketing and Promotions 

A strong marketing strategy is necessary before product launch. Promoting your apps as early as possible is always a good practice. The average cost of an MVP marketing campaign is at least $5,000 per month. 

However, this expenditure depends on the purpose and budget of the product. Most businesses implement an inbound marketing campaign; 

• Blog posts 
• Social media posts 
• Email newsletters 
• Networking

Sales 

You must also keep feeding your sales funnel to expect a higher conversion rate. It plays the essential role of capturing the target audience and maximizing the profit of your digital product. Business owners may need to invest $5,000 to $10,000 to find the ideal sales funnel. 

Maintenance 

An MVP app isn’t the final version of a digital product. You must invest in its maintenance to refine the features, UI/UX, security measures, etc. Maintenance costs are usually 20% of the initial MVP development budget. This expenditure mostly depends on MVP complexity, team experience, and location.  

You might need to spend $10-$20 per month to use a server, integrations, APIs, and constant support from the development team. 

Actual MVP Development Costs 

We can divide the MVP development process into several stages. Each stage will contribute to the overall budget. 

Prototyping and Idea Validation 

The first stage involves prototyping, validating your ideas, and preparing a pitch for investors. You may need to spend up to $10,000 in this phase to define the foundation of your MVP, which will help you attract initial interest and funding. 

App Development 

Expect to spend between $15,000 and $50,000. However, the actual cost depends on the project’s complexity. This process covers everything from the core coding to technical development to making your MVP live. 

Professional Landing Page Development and Other Promotions 

You must also develop a promotional landing page to educate users and investors about your digital product. Building a strong online presence and generating initial user interest will cost you around $2,000. 

Tips to Measure the Sucess of an MVP

You need a strong evaluation mechanism to measure the performance of your MVP. This will give you a fair idea of how well it might be received by future users.  

User Engagement 

Consider learning about user engagement by measuring the current value of your product. A good engagement can significantly boost the user experience based on feedback. 

Sign-ups 

You need sufficient sign-ups to measure the user’s interest in your product. These sign-ups are highly likely to convert into paying customers shortly. 

Client Appraisals 

You can also evaluate success by monitoring the launch rate and downloads. This shows the level of interest users have in your application. We recommend making your app lighter and more user-friendly to expect higher engagement. 

Word of Mouth 

Some businesses prefer interviewing their potential customers to measure the product’s success. It can help you predict the success of your MVP. Start listening to their problems and ask what they think about your app. 

Why Could MobileCoderz be Your Ideal Partner for MVP Software Development? 

Do you want to hire mobile app developers for MVP development? MobileCoderz provides MVP development services for startups and enterprises. We have years of industry experience and knowledge to develop efficient solutions that fit your market needs and user interests. 

Our development team worships the Agile MVP approach to help you validate a business model efficiently. Use our MVP software development expertise to build roadmaps, prototypes, custom solutions, migrations, consulting, etc. 

Experience the power of multiple mobile development tools and technologies with flexible pricing models. A streamlined development approach ensures better market reach, higher customer acquisition rates, and cutting-edge MVP design.