Why MVPs Help Startups Survive: A Must-Know Guide

Category:
Startup Growth
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Date:
October 16, 2024
Why MVPs Help Startups Survive: A Must-Know Guide

The hardest part of app development ends once the MVP (Minimum Viable Product) is built.

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 MVP? image

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

It is not rare for startups to make mistakes when analyzing the collected data after launching paid ads and gathering feedback.

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 here about how to validate your app idea.

Faster app idea testing

Developing an MVP is faster than creating an app with complex features, and at the same time more efficient since it enables development teams to launch and start gathering feedback more quickly.

MVP app development 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 guide you in a new direction of thinking regarding features and improvements for the MVP version.

The 3 primary purposes of creating mvp image

Understanding the MVP development for startups

Early-stage startups face a lot of challenges: tight budgets, short timelines, competition, and figuring out product-market fit. These challenges directly affect how smoothly the MVP development stage goes.

The key is having the right people in place. Experienced project managers, developers, and marketers can make MVP development much faster and less stressful. Mentors and advisors also help, they’ve been through similar situations and can guide you away from costly mistakes.

At this stage, many startups wonder: should we build the MVP in-house or hire an external team? For most, outsourcing MVP development services is a smart choice. It gives you access to experienced developers, keeps costs predictable, and speeds up delivery without long-term hiring commitments.

The MVP stage is all about staying flexible and learning fast. You’ll face setbacks and need to make changes and that’s normal. What matters is persistence: listening to users, iterating quickly, and keeping your focus on the features that really matter. Done right, your MVP becomes the foundation for a product that can grow and succeed.

Why startups benefit from 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 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 focused on going to the market quickly to test the assumptions gathered based on the market research.

Besides the costs of developing an MVP, whether internally or through outsourcing, there are also additional expenses that come with launching an app on the App Store or Play Store, that’s why it’s important to know tips and hacks for minimizing or avoiding app store fees  wherever possible.

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. 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.

Have an app idea and want to know how much does it cost to develop an MVP? Find out here!

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 North America or Western Europe. Hiring developers from Serbia, in particular, can be a smart choice, you get highly skilled engineers at competitive rates, with strong English communication and a work culture closely aligned with Western standards.

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, whether web, mobile, or cross-platform, plays a key role in determining both the cost and speed of MVP development. More advanced technologies or specialized frameworks can require higher investments in time and money. Startups can opt for separate development teams for iOS and Android apps or choose cross-platform development to save resources and accelerate delivery.

Popular cross-platform options include Kotlin Multiplatform, Compose Multiplatform, Flutter, and React Native. These frameworks allow code sharing across platforms, meaning fewer developers are needed, faster MVP development, and lower overall costs.

In one of our recent projects, our senior developer analyzed the pros and cons of CMP vs Flutter for a complex mobile app. Based on the app’s requirements, team expertise, and the need for high-quality native UI, they decided CMP was the better choice and documented the decision-making process in a detailed blog post.

Choosing the right technology stack depends on your app’s requirements. For example, Kotlin Multiplatform and CMP are great for apps with complex native UI and business logic, while React Native can speed up MVP delivery for simpler apps. Understanding the benefits of cross-platform development can help you decide which approach is best for your MVP, ensuring a balance between quality, time-to-market, and development budget.

Factor that impact mvp development cost

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​.

How much cost to build mvp in 2024? image

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.

Poor user experience

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.

Additional cost of MVP development image

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 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.

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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.

Factors influencing the mvp development image

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.

Mobile app development speed

Conclusion

If you’re thinking about launching your own business, here’s the truth: you don’t need to build a full-blown app right away.

In fact, trying to do too much too fast is one of the fastest ways to burn time, money, and energy. That’s where an MVP comes in. It’s basically your idea in its simplest, most functional form, just enough to test if people actually want it.

Think of your MVP like a way to learn before you invest big. You put something real out there, watch how people use it, and get honest feedback. Then you tweak, improve, and build the features that really matter. Even small changes based on real user behavior can save you months of work and a ton of money.

Here’s a tip most founders forget: don’t try to do it alone. Get the right people around you, developers, advisors, mentors, who’ve been through this MVP thing before. They’ll help you avoid mistakes, pick the right tech, and keep your plans realistic.

Bottom line? Start small, test fast, learn a lot. That’s how you turn an idea into a product people actually love, without losing your mind (or your budget) in the process.

And if you want to see how a real team can help bring your MVP to life, explore our website and check out the ways we guide startups from idea to launch.

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