Want to get your product to market faster and cheaper without sacrificing quality? 🚀
MVP outsourcing might be what you've been looking for.
In this article, I'll break down why more and more startups are choosing to outsource MVP development and how it can give you a major competitive edge.
Plus, I'll share some hard-earned lessons on how to find the right MVP development partner and avoid common mistakes.
So, if you're a founder looking to build an MVP without breaking the bank, keep reading! 📝
The Case for MVP Outsourcing
First things first: what exactly is a Minimum Viable Product (MVP)?
In a nutshell, it's a lean version of your product that includes only the core features needed to test your hypothesis and get real-world feedback from users.
The goal is to validate demand and gather insights as quickly and cheaply as possible so you can iterate and improve before investing heavily in development.
Sounds simple enough, right? But here's the thing: creating an MVP in-house or finding a technical co-founder can be really hard for non-technical founders.
You might struggle to balance product development with all the other demands of running a business.
So, by partnering with an experienced software development agency, you can get your MVP built faster and more efficiently than you could on your own.
And because you're not committing to a full-time in-house team, you can keep your costs down and stay lean and agile as you validate your idea.
Finally, as a non-technical person, there are particular things about technical people that you probably don’t understand, and that would make working closely with technical people very hard unless there is a good level of mutual trust.
Key Benefits of MVP Outsourcing for Startups
So, what are the specific advantages of outsourcing MVP development? Let's break it down:
Faster Time to Market
One of the biggest benefits of outsourcing to a team of experts is the ability to get your product to market faster.
When you work with an experienced MVP development team, you can leverage their established processes and best practices to move quickly and efficiently.
They've done this before, so they know how to anticipate and avoid common roadblocks and can help you make clever trade-offs.
Plus, because they're focused solely on development, they can work more quickly than an in-house team that's juggling multiple priorities.
Focus on Core Business
Another key advantage of outsourcing MVP development is that it frees up your internal team to focus on what they do best.
Instead of getting bogged down in the technical details of product development, your team can stay focused on big-picture strategy, customer development, and go-to-market planning.
This is especially important in the early stages of a startup, when there are a million things to do and never enough time or resources to do them all.
By outsourcing the heavy lifting of MVP development, you can stay laser-focused on validating your idea and building your business.
Access to Global Talent
When you outsource MVP development, you're not limited to the talent pool in your local area or your personal network.
You can tap into a global network of skilled developers, designers, and product managers who bring a diversity of perspectives and experiences to the table.
This can be especially valuable if you're working on a complex or niche product that requires specialized expertise.
By partnering with an MVP development company that has a track record of success in your industry or domain, you can shortcut the learning curve and get to market faster.
Cost of Outsourcing vs. In-House MVP
Let's talk about the elephant in the room: cost.
Developing a high-quality MVP can be expensive, whether you do it in-house or outsourced.
But when you factor in the cost of recruiting, training, and retaining a full-time in-house development team, outsourcing starts to look a lot more attractive for early stage startups.
And because outsourced teams are typically more efficient and experienced than in-house teams, you may end up getting more bang for your buck in terms of features and functionality.
As a rule of thumb, developing an MVP can start as low as $5k. Below that the complexity of your product is so low that you can probably figure it out on yourself, even if you are not technical.
For proper development though, meaning if you want something with solid foundations on which you can iterate quickly, you’d be looking at upwards of $25k.
For complex products you can expect to easily exceed $100k.
To this cost, you have to add the maintenance, hosting, product design etc…
Of course these are just estimates based on my empirical experience. There are many factors that can greatly influence these figures.
Things like the tech stack, the location of the development team or freelancer, the guarantees you want etc…
For example, developing your MVP with a low-code tool like FlutterFlow can reduce your development cost by a factor of two to four.
For a more thorough breakdown of these costs, check out my article where I answer the question: how much does it cost to develop an MVP.
By the way, we are Realistack, a product design and MVP development studio that exclusively works with tech startups. If you want to launch your startup and need help with developing your MVP, don’t hesitate to reach out. We usually take a 5% share upon delivery in exchange for a lower hourly rate. That way, our interests are aligned with yours in the long run.
One worry that I always had when I wanted to outsource the development of my startup’s MVP was all the things in the code that I would not see, but if done wrong, could cause major issues and slow us down later on. That’s why I like the idea of taking share and truly think that’s the way to go if you decide to outsource the development of your MVP. We also offer product design services which is a great if you want to do things properly and already have some early validation.
How to Choose the Right MVP Development Partner
Of course, not all MVP development partners are created equal. To get the most value out of outsourcing, you need to choose your partner carefully.
Here are a few key factors to consider:
Defining Project Goals
Before you start shopping around for an outsourced team, it's crucial to have a clear understanding of your project goals and requirements.
What specific problem are you trying to solve? Who is your target customer, and what features and functionality will they expect in an MVP?
The more specific and well-defined your project brief is, the easier it will be to find a development partner who can deliver on your vision.
Evaluating Development Strategies
Not all MVP development strategies are created equal, so it's important to find a partner whose approach aligns with your goals and values.
Look for outsourcing companies that emphasize lean development, rapid prototyping, and iterative testing - these are the hallmarks of a successful MVP project.
Avoid partners who push for a big-bang, all-or-nothing development process - this is a recipe for bloated budgets and missed deadlines.
Communication and Collaboration
Effective communication and collaboration are essential to the success of any outsourced project.
Look for a development partner that values transparency, responsiveness, and proactive communication.
They should be willing to work closely with your team, provide regular updates and demos, and be open to feedback and iteration.
It's also important to consider factors like time zone alignment, language barriers, and cultural fit - these can all impact the smoothness and efficiency of your collaboration.
Portfolio Review
Finally, don't just take a development partner's word for it - look at their portfolio and case studies to see the quality and complexity of the projects they've delivered.
Specifically, look for examples of successful MVP projects they've completed for startups in your industry or niche.
If possible, reach out to those startups directly to get their honest feedback on the outsourced team's performance and value delivered.
Do your due diligence, trust me on this because I’ve done this mistake and it was very painful. It’s surprising how many people avoid this and that’s why there are so many mediocre agencies out there.
I also have an article on software outsourcing for startups, you may want to check it out there are great points specially concerning startups.
Comparing In-House MVP Development vs. Outsourcing
Still not sure if MVP outsourcing is right for you? Let's take a closer look at the pros and cons of each approach.
In-House MVP Development
Pros:
- Complete control over the development process and team
- Easier to align with company culture and values
- More flexibility to pivot or change direction on the fly
Cons:
- Expensive to recruit, train, and retain top talent
- Limited by the skills and experience of your in-house team
- Can be difficult to scale up or down as needs change
- Slower development process due to competing priorities and distractions
MVP Outsourcing
Pros:
- Access to a wider pool of specialized talent
- Faster development process due to established best practices and processes
- More cost-effective, especially for short-term projects
- Easier to scale up or down as needed
- Frees up internal resources to focus on core business functions
Cons:
- Less control over the day-to-day development process
- Potential for communication and collaboration challenges due to time zone, language, or cultural differences
- Risk of misaligned incentives or lack of long-term commitment from outsourced team
- Dependence on external team for ongoing maintenance and support
Ultimately, the right approach will depend on your specific circumstances and goals.
If you are a solo founder with no technical background, I would suggest first educating yourself on the subject; it will help you anyway.
But then, you should consider MVP development services as there are so many difficulties you don't appreciate when you are new to the field. Still, if you underestimate the amount of effort needed to create a good product, you will learn it at your own expense.
Strategies for a Successful Outsourced MVP Development
So, you've decided to outsource your MVP development.
Now comes the hard part: actually making it happen.
Here are a few advice to set yourself up for success:
Collaborative Kick-Off
Before any development work begins, it's critical to have a collaborative kick-off meeting with your outsourced team.
This is your chance to align on project goals, requirements, and expectations, and to establish a shared vision for the product.
Make sure to involve all key stakeholders from both your internal team and the outsourced team, and come prepared with a detailed project brief and any relevant assets or documentation.
The more aligned and bought-in everyone is from the start, the smoother the development will go.
Iterative Development
One of the biggest mistakes startups make with MVP development is trying to build too much too soon.
The whole point of an MVP is to test your core hypothesis with real users as quickly and cheaply as possible.
So resist the urge to cram in every feature and bell and whistle, and focus on building the simplest version that still delivers value to your target audience.
Then, use the feedback and insights you gather from early adopters to inform future iterations and improvements.
This iterative, feedback-driven development is at the heart of successful outsourced projects.
Focus on Core Features
To keep your MVP lean and focused, you need to be ruthless about prioritizing features and functionality.
Start by defining your core value proposition - what is the one key benefit or problem you're solving for users?
Then, identify the minimum set of features needed to deliver on that value prop and get the product in front of users.
Everything else can wait for future iterations.
This can be a tough conversation to have with stakeholders who are eager to see their pet features included.
But staying focused on the core essentials is critical to getting to market quickly and efficiently.
Transparent Communication
Finally, one of the most important factors in the success of any outsourced project is transparent, proactive communication.
Make sure you have clear channels and rituals in place for sharing updates, gathering feedback, and escalating issues or roadblocks.
This could include regular stand-up meetings, demo sessions, and retrospectives to reflect on progress and identify areas for improvement.
The more visibility and alignment you have with your outsourced team, the easier it will be to stay on track and deliver a successful MVP.
