Minimum Viable Product (MVP) and its implementation costs during startup

The Minimum Viable Product (MVP) is one of the product development strategies that are generally carried out by startups. A startup has a big risk when only launching its first product. Their products do not have to be accepted by the community even though they have been made complete at high costs.

Minimum Viable Product (MVP) and its implementation costs during startup
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What are the main benefits of MVP?

MVP will be able to provide a very clear picture of the value of use and the main benefits of related products. MVP is not only evaluation material for companies but has also been launched to consumers so they can find out their responses.

MVP is a technique for developing new products or sites. The aim is to provide features that are not too advanced but enough to meet the needs of their first customers.

The main function of making MVP is to increase customer interest in the product launched. Most startups use it for this purpose.

How much does it cost to build MVP?

Each team or expert will give you different estimates about the cost to develop an MVP. Even if you describe your project in the same way, the estimate will still be different. This happens because the cost of MVP software depends on various variable factors.

Variable Factors in MPV

Some very important factors that affect the cost of MPV software that must be known are as follows:

1. Scope of work

One of the most substantial factors that affect the cost of MVP is the scope of work. In other words, what features and functions do you want to see in your cellular or web application.

Except for several features, developers can also consider the complexity of implementation or the need to use certain technology, frameworks, etc.

The workload can also include other tasks that are not related to the coding process itself but is part of the development stage of other products.

2. Type of Development Team: In-house vs Outsource

There are two main options that you can choose which are internal and outsourcing development.

Internal development is about having your full-time team located in your office and managed directly by you. In addition, the whole idea is that you not only employ them for certain projects but for your company in general.

Outsourcing is usually a cheaper choice because you employ established teams from abroad. Plus, you also save time by not having to build a team like that from the start.

For startups that are built around cellular applications or the web and are very dependent on them, having their own team may be important. However, outsourcing is a temporary solution that is good enough for the development of MVP when you create your In-house team.

3. Experience & Expertise

These factors will also determine the tariff per hour of your offshore team. The rates can also go up a little if you need special skills. Of course, this is not a permanent division because every company may have its own system to define developer experience.

4. Type of Contract

Finally, the type of contract with your long-distance team can also affect your MVP cost.

It seems that collaboration with your long-distance team will be based on time & material contracts. This means that you only pay the actual fee of the job measured in a few hours.

Alternative options are fixed-price contracts. As you can guess from its name, this type of contract is based on a rigid MVP fee that has been approved and cannot be changed later. Thus, both parties must also approve the exact scope of work and their respective responsibilities. This makes changes or further adjustments difficult to apply.