For outsourcing companies, a startup is a set of technologies and applied tasks. It’s more difficult, it’s easier, often, in essence, they come down to either an online store or CRM (Customer relationship management), ERP (Enterprise resource planning), aggregators, instant messengers (i.e. modularity).
All the innovativeness and complexity of the development will rest on your roadmap, in the use cases and automation of business processes.
We can only name the price plug for MVP (Minimum viable product) with minimal functionality – from X to Y thousand dollars. And this is a big variation in price, so some details are recommended in more detail. Here are a few points:
- Maximum load on MVP.
- What does the admin part of the service look like?
- How many additional features.
So, what is the development of the MVP application?
- Preliminary terms of reference (specification).
- Screen prototyping (thumbnails).
- Detailed TOR and staging.
- UX / UI design.
- Developing application functionality.
- Running on a test server and testing.
- Finalization of errors, or logical inconsistencies.
- Full-featured release for the entire audience.
- Customer support.
The main thing for the customer to understand is that development does not only consist of hours of developers, but there are also many stages before and after writing code, the costs of which when working directly with them, you have to take on.
Drawing up a technical task is one of the most important stages on which all subsequent development and compliance with deadlines depend.
This allows you to reduce the MVP price of future work, drive away many implementation scenarios in your head or on test benches before writing code, as well as identify bottlenecks and complex points in the implementation.
TK allows you to make cooperation comfortable for both parties and get the desired result the first time, without additional processing.
You can read more about the cost of errors and the benefits of writing requirements and increase brain power with Steve McConnell’s book “Perfect Code”. The data say, for example, that a defect in architecture, the correction of which at the design of architecture costs $ 1000, can result in $ 15 thousand during system testing. Steve McConnell, Perfect Code
On average, the development cost will vary from $ 40 to $ 120 per hour for specialists – depending on their specialization within the framework of one IT studio.
At the stage of concluding the contract, the estimate will change and be more detailed, with a breakdown by functionality or task.
It is important to remember that value does not appear unreasonably. If you want to make it cheaper, you need to review what you are offered and look for an alternative. Bargaining is the wrong approach to cooperation; it will be more efficient to jointly look for options for a cheaper solution.
- You can send your request to different studios to compare the cost of work.
- You can learn how to outsource web development and hire a professional studio.
- Hire your team (but do not forget that you will need to independently close many tasks, conduct a project, look for, control specialists, describe tasks, answer questions promptly. Do not forget about indirect costs: paying for the office, paying all taxes and related expenses for infrastructure.)
- Focus only on the main thing and remove all the features that often eat up a lot of time, and do only what will benefit now.
- A detailed description of the tasks.
When developing MVP, it is necessary to check it not only from the technical side but also from the ideological one – to make sure that the final product will be viable and in demand. Consider the basic tools and techniques for checking MVP.
It allows you to study customer needs and test MVP on real users.
A / B testing
A great way to check multiple product versions and determine the best one.
They are used to collect data on user behavior (clickability, conversion).
With their help, you can talk about the application or service and find potential users before developing the product itself. For example, Dropbox service. Its creators published a demo video and in one day increased the number of subscribers from 5,000 to 75,000 in the absence of the product itself.
MVP for parts
Build MVP from ready-made services instead of developing from scratch.
MVP “The Wizard of Oz”
Creation of the illusion of full functionality until it is really available.
An example of such a startup: an online shoe store Zappos. Its founder, Nick Swinmern, at first simply photographed pairs of shoes in nearby stores and posted photos on the site. When the buyer placed the order, Nick went to the store and bought the right pair of shoes. So he checked the viability of his project, not having a product on hand.
By the principle of testing, it reminds “The Wizard of Oz”, the difference is that you do not imitate a fully working product, but immediately state that the actions are performed manually.
SaaS and PaaS
Creating MVP from ready-made services and platforms: Amazon Web Services, Facebook Connect, Mixpanel, WordPress, LiveChat and so on.
Demonstration of MVP functions using mockups, prototypes, and wireframes.
Better to count by time & material, rather than fix price
It’s more profitable for a startup, because in fix price a studio usually poses big risks, in this connection the margin may not be very profitable (but it’s important to consider: it’s beneficial for you to work on time & material with those who have relevant work experience).
Remember that the first version of your product project should be as simple as possible (only basic functionality). The deeper you go into development, the higher the cost of error. No need to bring it to perfect condition. The later you get user feedback, the more expensive the error will cost.