Why Is MVP Development Important For Startups?

If reading this sentence made you stop and question whether you misunderstood it, you're already headed in the right direction to build a successful app. It is not uncommon for startup owners to believe the most effort should be invested in the MVP version of the app, and afterward, only minimal adjustments remain. And no, we don't just say that based on the general opinion - we had experience with a client with this belief.

That’s why we decided to write an article about it and provide you with the basic guidelines on the MVP development process that guarantee success - all based on our years of experience working with startups.

What is MVP in app development?

In app development, MVP stands for Minimum Viable Product. It is the version with minimum features enough to deliver value to users and test the core concept of the app. If you have thoroughly planned out the problems your app solves, it means you have some assumptions that you want to test. That is the main goal of the MVP: to find your target audience, gather feedback, and validate your hypothesis about the app idea and its market while minimizing development costs and time.

What is an MVP version of an app?

The main 3 things that explain the purpose of building an MVP are:

Risk reduction

By having a development team for launching a simplified version of the app, startup owners can minimize the financial and resource risk associated with building a more complex product that may not resonate with users.

‍MVP development costs are lower than developing the entire app right away, as they do not include adding functionalities and addressing bugs in the long term but rather focus only on investing in the initial testing phase.

That is why planning the initial MVP development budget is crucial to ensure the project can move forward without unexpected financial hurdles.

Market validation

This is the phase where most startups make mistakes because they don’t know how to analyze the feedback gathered after testing or launching paid ads. If you don’t have marketing people on your team who specialize in data analysis, you can always outsource experts who can help you with that. Common methods of feedback gathering include questionnaires and surveys, interviews, user reviews, and social media groups. You can read more about it here.

However, there is a way to test an app idea even before the official MVP testing!

This approach reduces MVP development costs and can change the direction of the entire development process. There is a tool to validate your app idea where you can easily get a sense of how your app would look and function even before investing in development.

There are many online app builder tools, but they are intended for individuals who want to develop their apps on their own using no-code technology.

What is the difference between them and this App Builder?

Many people struggle to visualize their app concepts, making it difficult to communicate their ideas effectively. Without a clear representation of their vision, misunderstandings can arise between clients and developers, leading to possible delays.

The AppBuilder is an interactive tool that allows you to easily design and customize the layout and features of your mobile app before development. It helps you visualize mobile apps in real-time without needing advanced technical skills. By providing a live preview of different design options, this tool links app ideas to their development, ensuring you and the development partner clearly understand the desired outcome from the start.

You can customize the color, the number of tabs in the navigation bar, see what an eCommerce application would look like and create in-app purchases, what the chat would be like, and many other important features that will help you before you start with MVP app development.

That way, you can use it to test your idea completely free - use that design to conduct a survey and create focus groups to discuss their feelings about the app idea. By focusing on user feedback throughout your app development, you’ll create a product that better fits the needs of your target audience, increases user satisfaction, and reduces the risk of mistakes that may cause higher MVP development costs.

Faster app idea testing

Developing an MVP is typically faster than creating an app with complex features, enabling development teams to launch and start gathering feedback more quickly. Building an MVP means prioritizing speed over complexity. As users interact with the app, their feedback provides insights into what works and what doesn’t. Understanding user behavior, preferences, and pain points can lead to the discovery of new opportunities and feature enhancements that might not have been initially considered.

What is the MVP stage of a startup?

Startups face a wide range of problems and challenges, especially in their early stages. Problems like limited funding, product-market fit, competition, time management, finding the right team, and others are each important in their own right, and it's hard to say which is a bigger or smaller issue, as any one of them can cause future complications if not addressed in time with full attention.

That's why it's important to find people for each part of the development stage, as it should be handled by experts in project management, marketing, and app development, and in doing so, you save both costs and time. Many startups fail because they don't have a clear and strong business model. They must be willing to try new things, change paths when needed, and improve the way they produce and deliver value.

Having a mentor or a network of experienced advisors can be valuable for a startup's future growth. Mentors provide guidance, help navigate obstacles, and share insights that can prevent costly mistakes. Many successful startups attribute part of their success to the support and advice they receive from experienced individuals.

Another important thing is the ability to be agile and quickly adapt to changes in the market. Startups often face numerous failures and rejections before they succeed. Persistence and resilience are key traits for founders. The ability to stay focused, learn from mistakes, and keep pushing forward is critical for long-term success.

Understanding all this can help startups navigate the challenges of the early stages, including MVP development. The MVP stage of a startup refers to the phase where the team develops and launches a minimum viable product (MVP). This stage is crucial in the mobile app development process because it focuses on validating the startup's concept with real users, gathering feedback, and testing assumptions and market demand for the product.

Given that this is a crucial stage, the question always arises whether to hire an in-house team or to outsource MVP development services. You can read more about that here.

Interesting facts about outsourcing MVP development services

1. Time zone differences

Many startups that outsource MVP development team, take advantage of time zone differences wisely. For example, outsourcing to teams in regions like Eastern Europe or Asia allows work to continue overnight, creating a 24-hour development cycle. This can accelerate the MVP development timeline significantly.

2. Proven success

Slack, one of the most popular communication platforms, outsourced mobile app development during the MVP stage. This allowed them to focus on refining their core product and business plans while external experts handled the technical side, contributing to their early success.

3. The ability to scale

Outsourcing MVP development allows startups to quickly scale up or down their team based on development needs without the long-term commitment of hiring an in-house team. This flexibility is ideal for MVP development, where even the core features can change rapidly based on market research and early user feedback.

4. Focus on business strategy

By outsourcing MVP development, startup founders can focus on business strategy, user acquisition, and marketing. This division of labor allows them to stay focused on future growth while experts handle the technical details of building a successful MVP.

5. Diverse skill sets

Startups often lack the broad range of skills required to build an MVP, such as UI/UX design, back-end development, app developers, and testing. Outsourcing gives them instant access to a full-stack team of professionals with various specializations who can cover all aspects of MVP development and immediately start with validating market demand.

How much does MVP app development cost?

The difference between MVP development price and overall app development cost primarily lies in the scope, purpose, and features included in each stage. MVP development costs include only prioritized and core features necessary to validate app idea and gather user feedback. On the other hand, the full app cost represents the total cost of developing the complete version of the app, which includes all desired features, enhancements, and functionalities beyond the MVP.

MVP development typically requires less time, from a few weeks to a few months, depending on the complexity. The development process is streamlined to focus on going to the market quickly to test the assumptions gathered based on the market research. The full app generally takes significantly longer to develop, often several months to over a year, as it involves testing, design iterations, and additional feature integration.

Factors that impact MVP development cost

We know that price can often be a decisive factor when determining what core features an MVP will include and whether it will be developed by an in-house team, a development agency, or freelancers. However, while we would all like to receive a fixed price, it's challenging to determine this in such situations due to the many factors that influence the cost.

Features complexity

The number and complexity of features included in the MVP can greatly affect costs. Simple MVPs, with basic functionalities, can range from $10,000 to $30,000, while more complex MVPs with advanced features may start from $30,000 and go up to $250,000 or more.

Development partner

Of course, the MVP development cost is significantly influenced by whether you choose to develop the app with a team you hire yourself, freelancers, or by outsourcing to a mobile app development company. Each option has its advantages and disadvantages. For instance, if you hire your own team, you will have more responsibilities related to managing them. On the other hand, using freelancers might be cheaper, but it carries risks since they can abandon the project at any time. On the other hand, hiring a development agency may incur higher immediate costs, but in the long run, it can be more economical due to fewer mistakes needing correction and time savings.

Location of the development team

The geographical location of your development team plays a crucial role in determining costs. For example, development rates in Eastern Europe or India are often lower compared to those in North America or Western Europe​. Read more here.

Timeframe

The timeline for MVP app development also impacts costs. If you need someone to build an MVP as soon as possible so you can start testing right away, keep in mind that shorter timelines may require more resources, increasing overall expenses. Typically, an MVP can take anywhere from 4 to 9 months to develop, depending on its complexity​.

Technology choice

The choice of technology (web, mobile, or cross-platform) and tools used for development can influence costs. More advanced technologies might require higher investments in terms of both time and money​. You can choose to have a development team for iOS and Android apps, or you can decide on cross-platform development such as Kotlin Multiplatform or Flutter. A good cross-platform framework enables rapid development by allowing code sharing where a single codebase can be used across multiple platforms. It also means that fewer developers are needed, which consequently reduces development costs as well. If you are still not familiar with cross-platform development benefits, this might help you decide on a technology stack.

When we roughly compare prices based on the app's complexity, it would look like this:

MVP cost:

Simple MVP: $10,000 - $30,000

Medium complexity MVP: $30,000 - $100,000

Complex MVP: $100,000 - $250,000+

Full app cost:

Simple app: $50,000 - $150,000

Medium complexity app: $150,000 - $500,000

Complex app: $500,000 - $1 million+

How much does it cost to build an MVP in 2024?

Simple MVP: Typically ranges from $10,000 to $30,000. These apps have limited features, often consisting of a few screens and basic functions.

Medium complexity MVP: Costs between $30,000 and $100,000. These apps include more advanced features such as user accounts, data storage, or payment processing, and usually take about 6 to 9 months to develop.

Complex MVP: Development can range from $100,000 to $250,000 or more. These apps are more intricate, possibly involving advanced technologies or extensive integrations​.

What is the average startup cost for MVP app development?

More and more applications are releasing versions that are not fully MVPs, and they struggle to assess the minimum features, which leads to additional costs, especially if the app fails. They need to test the app concept before testing the minimum viable product and investing in development.

Most startup owners skip the phase "test before testing", i.e. the pre-validation step, allowing them to refine the app concept before investing in full-scale development or formal MVP testing. Skipping this step can increase MVP development costs and prolong the development process.

The main additional costs can be:

More revisions and redesigns

Startups might move forward with development based on assumptions rather than real user feedback if pre-validation isn't done. Software development might face numerous changes and redesigns as it enters the MVP phase and finds its functionality or design doesn't satisfy user expectations. Developers and designers must invest more effort in these adjustments, which increases expenses.

Poor user experience

Perhaps some flow in the app is not intuitive to the user, leading to a drop in retention rate, or the idea is good but poorly presented in the app, causing a continuous decline in users. When these problems are identified only after the MVP app version is released on the Google and App Store, it requires additional fixes and changes, which delays the final version of the app and increases overall costs.

Long testing cycle

Fixing issues after the app has been partially or fully developed lengthens the feedback and testing cycles, pushing back launch dates and raising costs.

All these costs can be avoided if you conduct proper testing before developing the MVP itself. As already mentioned above, AppBuilder is an online tool that helps you visualize your app idea before development, and it allows you to show users what your MVP app will look like even before you build it.

The average startup cost for MVP app development ranges typically between $10,000 and $150,000. The cost depends on factors such as the complexity of the app, the platform (iOS, Android, or both), and the development team's location.

On the Aetherius Solutions website, you can estimate your MVP development cost. After answering a few questions about your app, our team will send you a full proposal with costs within 24 hours, so you won't have to plan approximately anymore - you'll know exactly what part of your budget is going toward the MVP development process.

How long does it take to develop an MVP app?

The development of an MVP app is a crucial step for startups and businesses to validate their app idea in the market. Some of the most common questions during the planning stage are: "How long does it take to develop an MVP app?" and "How much does MVP app development cost?"

The answer to both questions depends on several factors, including the app's complexity, features, and the platforms it will be available on (iOS, Android, or both). However, the typical time frame for MVP app development can range from 2 to 6 months.

Factors influencing the MVP development timeline

Agile methodology positively impacts the MVP development timeline by promoting short iterative cycles and prioritizing essential features, allowing teams to quickly deliver a working version of the app to gather customer feedback.

App complexity

A simple MVP with basic features, such as user authentication (login/signup screen, user profile) and data management, can take around 2 to 3 months to develop. On the other hand, more complex apps, which require third-party integrations or real-time functionality, may need 4 to 6 months or longer.

The development team at Aetherius Solutions can deliver the basic MVP version (login/signup screen, user profile) in just 2 weeks so you can show it to investors or start testing user reactions. And they can build an MVP app with user flow and your chosen features in just 1 month!

Number of features

The more features your MVP includes, the longer it will take to develop. Decide in time which limited functionality to include and focus on the main features that represent the main value of your app so you can speed up the MVP development process. Once the MVP is validated, additional features can be added in later versions.

Development Platform

Whether you're developing your MVP for a single platform (iOS or Android) or both will also impact the timeline. Single-platform apps typically take less time compared to multi-platform apps, which may extend the development process by several weeks.

A well-structured project plan for minimum viable products with a focus on key features is essential to keep the timeline short. Working with an experienced development team, you can often shorten the development cycle by streamlining processes and minimizing delays. It's also crucial to have clear communication about project goals and expectations to avoid unnecessary revisions during development.

Why is speed important in MVP development?

By applying lean startup methodology where MVP has the main role in agile development, you can accelerate the MVP timeline, enabling you to quickly validate app ideas through iterative testing and feedback while minimizing waste and optimizing resources.

The sooner you can launch your MVP, the quicker you can gather user feedback and make data-driven decisions for future app adjustments. Delays in MVP development can lead to missed opportunities, higher costs, and slower entry into the market. Therefore, balancing speed with quality is key to a successful MVP launch.

Which is the best MVP app development company in the US?

When searching for the best MVP app development company, many entrepreneurs instinctively look toward the US market, often overlooking the advantages of hiring skilled developers from Eastern Europe of South Asia, but for less development hour price. While the rates for app development in the US can be quite high, often ranging from $100 to $250 per hour, Eastern European developers offer the same level of expertise and quality at a significantly lower price, typically between $30 and $75 per hour.

This price difference allows startups and businesses to extend their budgets while still getting excellent mobile app development services and creative mobile and web solution. Eastern European developers have strong technical education and many universities produce highly qualified graduates who are experts in modern programming languages and technologies.

Working with Eastern European developers can provide businesses in Europe or North America with significant time zone connections, enabling real-time cooperation and quicker project response times.

Instead of only looking for the best MVP app development company in the US, embrace the cheaper option that leads to substantial cost savings and fosters long-term partnerships with dedicated teams ready to bring your app ideas to life. You can check out this team from Serbia that can guarantee you MVP success at affordable prices.

Why is MVP development important for startups?

Minimum viable product development plays a crucial role in the success of startups by allowing them to test their app ideas efficiently and economically. By focusing on building an app with only primary features that represent the core value proposition, startups can validate their concept in the real market, gather user feedback, and make necessary improvements before investing in full-scale development.

Utilizing app validation tools can further enhance this process, enabling you to visualize your app ideas before even investing in MVP app development. This tool allows you, as a startup founder, to present your concepts clearly, facilitating better feedback from potential users and investors.

By focusing on MVP development rather than building a whole app from the start and including numerous features instead of the main ones, you reduce wasted resources and ensure the product resonates with the target audience from the beginning. In conclusion, MVP development, combined with effective validation tools, empowers startups to make data-driven decisions and react quickly if needed, which is crucial for long-term success in a competitive market.

If you want to know stories from our clients and see what mistakes they made during the MVP development, get this E-book with real-life examples.