How Much Does It Cost to Build MVP for SAAS Project
High income and product success are the key priorities of any company or startup. The first step of a product’s success consists of testing, prototypes, and a properly distributed budget.
SaaS MVP is one of the profitable strategies for creating and implementing a working product. It has enough concepts and features to attract customers… as long as it’s well-designed and has the right budget. One of the ways to guarantee high quality of the SaaS product is to ask professionals from companies like https://intellisoft.io/ for help.
SaaS MVP Development and Its Role
Entrepreneurial startupper Eric Ries created The Lean Startup Movement, where he developed the minimum viable product (MVP) concept. This concept means a working cloud prototype, which includes all the necessary and sufficient functions for implementing this product.
Many companies have impressive and positive MVP experiences. For example, mastodons like Uber, Dropbox, and Zappos started with MVP.
This strategy has an attractive philosophy: the more expectations about a product and the budget, the less risk it has. In other words, MVP reduces the risk of low ROI and helps build a solid cash flow.
The main value is that you can spend minimal time on design and development and quickly get feedback from your users. All this will help to understand in which direction you need to move and what should be improved.
What Is the MVP Budget?
Cost is an ambiguous concept, especially for MVP creating. In addition, it can change during project development due to many factors. You can form an initial budget for several main expense items even with the factors variability and limited opportunities:
- Idea formation. It is the foundation of your startup and your product. You may need the help of a consultant if you still have a poor idea about the product.
- Analytics. It applies to all aspects: the target audience, competitors, the general state of things in the market, to collect all the information and put together a plan for creating and implementing your product.
- Design. This item can be cut in the budget, except for one point — UX design. You can save on visuals, but in no case on functionality and comfort in use.
- Development. It also depends on various factors and the potential risks. So, you can choose a simple technology stack or vice versa: you may need resources for more powerful tools.
It is also worth considering that your budget can be expanded. However, the contractor will always be ready to discuss any project’s nuances and the possible costs.
How Expensive Is an MVP Project?
It depends not only on the components of your project but also on the regions where you hire employees. Talented designers, developers, analysts, DevOps, and QA experts work all over the world.
Their rates depend not only on the specialty but also the regions of their residence:
- India — $15-$25
- Eastern Europe — $20-50.
- Australia — $100-180.
- Western Europe — $110-$300.
- North America — $150.
You can hire an employee for any of your budgets for the MVP Project. Hiring an outsourcing team will be several times cheaper than building an in-house team. So if building an outsourcing team can cost you $38,100 on average, you have to pay $178,770 for an in-house team.
MVP for SaaS project will be a great step to creating a successful IT product if you develop a basic plan and a rough budget.