MVP Planning Tips to Save Your Startup the Most Money

An MVP (Minimum Viable Product) is a product development philosophy based on fast market feedback. You build just enough of your product for it to perform its core functions, and then start selling it immediately. This lets you engage the market way quicker than with traditional development where you only ship a product when totally completed. You can then use the market’s feedback to build the rest of your product or abandon it if there’s no interest. According to a report from cbinsights.com, 38% of startups fail because they run out of money, and 35% fail because the market didn’t care about their product or service. That’s because they burned money to create a product that the market doesn’t need. Costs burgeon when you waste time developing features for a product nobody wants. And that’s what makes MVPs so valuable. If the MVP fails, you won’t waste years and thousands of dollars to create a dud. But if the MVP sees some success, then you know you are onto something.

5 Ways You can Save Money on an MVP

Spending money wisely goes a long way in the modern business climate, even if you have lots of funds. An MVP lets you know if you should invest more money into developing your product, or if you should redirect that money into different projects. Here’s how you plan and build an MVP.

1. List the Product’s Core Features

What is your product’s main feature? Why should I, as a user, buy it? What fundamental problem does it solve? Be as specific as possible when answering these questions. That way, firms will give you a more accurate estimate of costs, technologies, and timelines. And with accurate estimates, you can more easily find a firm that aligns with your goal. If you are unclear with your requirements, firms will have to guess what you’re looking for. This bloats the production process, which in turn balloons costs. Clear expectations help keep things running smoothly.

2. Set a Clear Budget for the MVP

Now that you know what you need, you can set a clear development budget. When you and the development team agree on a budget, you both know what to expect. They get the money, and you get your product. The main issue with not having a clear-cut budget is that often you’ll end up switching development teams, because the original one has turned too expensive. This comes with extra costs and lots of time wasted, as well as an increased risk of the product ending up in ‘development hell’.

3. Establish a Timeline for the MVP

You have to act as your own product manager. Establish a timeline together with the firm. Break up the project into easy-to-reach milestones and keep an eye on the process. When the firm reaches a milestone, review and revise how the product is coming together. Don’t accept compromises. If the firm you’re talking with can’t accommodate your timeline, look for a different one. But keep your expectations realistic, because you can’t expect anyone to build the next Facebook in a week.

4. Shop Estimates for your MVP Development

You should find more than one qualified team to create your product, unless you have specific development needs (such as using an uncommon framework or having stringent requirements). Look for a team that will not only accept your demands, but whose personality fits yours and your team’s. You’ll be working together for some time, so look for people you gel with. Get those estimates on paper and confront them closely. Also, take note of which teams look like a good fit. Spending a little more money (within budget) to work with a team that really gets you certainly beats feeling aggravated all the time just to save a few thousand dollars.

5. Stay Focused on the MVP's Core Features

Stick to the core features list during development. Don’t, under any circumstance, think “It would be cool if we added X feature to the MVP”, with X not being pre. This is a trap, because the situation can spiral quickly. You start by adding a tiny feature, and 4 months later you find yourself with a Frankenstein of a product that does a little bit of everything. Any feature that doesn’t help with your product’s main function should be left for after you have validated your idea. Never stray away from your features list, budget, and timeline. It’s ok if you have to pivot mid-development–rarely are plans perfect from the get-go–just make sure you are moving forward.

Invest Your Money with the Right Firm to Create Your MVP

The right firm will deliver a working MVP in time and within budget. Got an idea that you want to see come to life? Contact us, and we’ll create a development plan together. We use methods that deliver proven results to our clients. And most importantly, we work closely with you on every step of development. We are not a fire and forget agency. We work with our clients to ensure they get what they are looking for. So get in touch with us now to learn more.