Why MVP Development Is a Smart Move for Startups

Dinesh Thakur

01 May 2025

Developing software or a mobile application usually costs $20,000 to $30,000. But guess what will happen if the platform is not up to the mark or does not resolve users' problems? It can be devastating for any business if the expectations are not completely fulfilled with the software. Here comes the role of minimum viable product (MVP) development. It helps businesses get an idea of full-fledged software and can get reviews from users. 

MVP development not only saves crucial business hours and development costs but also allows entrepreneurs to pitch investors or the public for funding. With the help of MVP development, one can have the idea whether the platform is resolving the users’ queries or not, can demonstrate value from the outset, can collect users' data, and can enhance the features as per the feedback.

Why MVP Development is Necessary

Let’s understand with the stats why it is necessary for the platforms to get an MVP before going for full-fledged software development.

• 10-20% of the startups fail in their first business year.
• Up to 30% of the startups with venture backing end up shutting down.
• Most of the businesses fail due to a lack of product-market fit.
• 75% of the US startups leave the business in the first 15 years.
• More than two-thirds of the startups have never given a positive return to the investors.

The Internet is filled with numerous stats about startups and businesses, and multiple reasons lead to the failure of companies. 

But let’s see which businesses have succeeded in the online marketplace because of the MVP development, business vision, and better plans.

• Amazon: Amazon started as an online bookstore and has become one of the biggest e-commerce platforms.
• Facebook: It started as a student social networking site and has now become a company worth 164.5 billion USD.
• Airbnb: Began with a simple website for listing rooms to rent out quickly, and is now connecting travellers and property owners globally, and has created $11.1 billion revenue in 2024.
• Tinder: Began its journey as a basic dating platform with the feature of left & right swiping. Today, most dating apps have the same or similar features.

Benefits of MVP Development for Startups

Joining the online marketplace with the startup is challenging for everyone, from building a user base to keeping it on the positive side of economic growth. In such a case, getting an MVP for platform development can be a great relief from all ends. With the correct MVP development company, you can leverage a faster & accurate platform, an efficient solution, reduce business risk, and pitch the investors with an MVP.

Faster Time to Market

Getting an MVP for the startup will help to take over the market at the earliest, without missing any opportunity. The average time to build an MVP for any business takes 3-4 weeks. The instant development time will help your business idea to make a market presence in no time, and it will help the business to get early birds more accurately.

Cost Efficiency

Being a startup, if somebody is looking for a full-fledged custom software development, then it could be a risky step financially and strategically. On average, the custom software development cost starts from $30,000; instead of investing a considerable amount, it's always preferable to go for the hit-and-trial model, as per the market experts. The MVP for the product not only helps financially but also helps strategically.

Collect Feedback

With the launch of the MVP product in the marketplace, businesses get early feedback from the beta users that helps the platform. MVP helps to find the pain point, where platform features are lacking, and what things need to be improved fully. The feedback from the real users helps the business to become more user-centric and grow at a rapid pace.

Reduced Risk

As mentioned above, 10-20% of startups fail in the early stages for multiple reasons, and taking the full-fledged platform in the online marketplace is one of them. Without knowing the reliability, user-centric features, and the secure framework, getting into the market can be risky. MVP development for the software or custom application helps the business read the market, reducing the risk to a minimum.

User Centric Development

The market does not run on gut feelings; neither should any business, whether an enterprise or a startup, get into the market just with gut. A data-driven plan, accurate business vision, and a user-centric platform are necessary, especially for the startup to stay and grow in the market.

Lower Risk of Failure

When the platform is based and crafted according to the users’ demand, there will be a very low risk of facing difficulty and failure when the full-fledged app launches. MVP software development companies help businesses 360 degrees, from prototype to full-fledged custom software development. It lowers the risk of startup failures and helps to grow the business online rapidly with complete accuracy.

Invite Investors

MVP development also helps startups attract investors by validating the concept, showing traction, and determining the scope of growth in the upcoming days. MVP development helps startups in all aspects, from reducing business risks to getting real insights and attracting investors.

Flexible & Customizable

As the software or application will be in the development stage, it will be easier for the software developers to customize features and frameworks to make it more user-centric. It will help startups build a more accurate bridge between the user and the services.

Time & Cost to Build MVP for Startups

Per the market standards, the average cost to develop an MVP starts from $5,000. You can get the MVP product within 3-4 weeks with basic features and a framework that businesses can use to pitch investors and get user feedback.

How to Build an MVP for Your Startup in 8 Steps

From identifying the problems of the users to defining the target audience, to hiring a reliable MVP development company for the development. Getting through these seven channels, any startup can find an accurate user base, features, and secure model.

Define Problem

It is necessary to go through the channel of in-depth research to find what users are looking for, and your business idea can help them to solve the pain point. This will allow the platform to get the real insights and scope of a business idea.

Target Audience

Being precise and clear with the target audience the business wants to pitch to will allow companies to create an accurate marketing plan and user-centric solutions. Once the business is clear with the thoughts & target audience, it will help the MVP development company to deliver the product more efficiently.

Hire MVP Developers

Hiring a full stack software development company to develop the platform would be a cost-effective and most appropriate move. Hire a company that can help you out throughout the process, from business consultation to MVP development and full-cycle software development.

Plan Journey

Once you are with a reliable and experienced MVP development company, the rest can be their responsibility. The outsourced business consultants will help the business plan the platform's blueprint to deliver with excellence. Hiring an outsourced company costs much less than setting up an in-house team.

Core Features

Discuss with the hired team and get the essential features into the product that directly resolve and answer users' queries. Ensure not to miss any basic and most essential features of the platform in the first stage of MVP development.

Right Tech Stack

Getting the appropriate and reliable tech stack for the development of the product is one of those things where startups should not compromise. Discuss and get the highest secured and user-centric tech-stack to make a user-friendly platform.

Launch Small Test

Launch the MVP product in the online marketplace to get the response, feedback, and criticism about the product. This test will help the startup to edit, enhance, and make the platform more reliable, user-friendly, and growth-centric.

Improve

With the help of feedback and response from users, discuss with the MVP development company and enhance the platform to bring the best out of the business idea.

Why Choose DITS as MVP Development Partner

DITS is one of the leading MVP software development companies providing a 360-degree solution for many businesses. From business consultation to prototype & MVP development, and from full-stack software development to support and maintenance, we are the one-stop solution for startups.

• Hire on multiple engagement models
• Cost-effective & high-end services
• Proven expertise to help startups 
• 8+ years of experience
• 200+ Professionals to support & develop solution
• 4.8-star rating on Google Reviews
• 97% client retention rate
• Custom software development experts

What We Have For MVP Development

• End to End MVP Strategy
• Dedicated Cross-Functional Team 
• Agile MVP Development Process
• Tech Stack Flexibility
• In-depth market research 
• Prototype & High-End UI/UX development
• Post-Launch Support & Scaling

FAQs

Why is MVP development important for startups?

MVP development is necessary for startups to get an idea of the actual market demand, to get users' feedback on business ideas, to lower the risk of failures, to invite investors, etc.

How much does it cost to build MVP for a business?

The average cost to develop an MVP for any startup starts from $5,000; it can be more or less depending on the business requirement, features, tech stack used in the development, market demand, etc. 

Will I be involved during the development process?

Our business development experts and developers will be in touch with you throughout the development process to keep you in the loop, provide real-time updates, and resolve your queries. 

Can you help me scale after the MVP launch?

Our team of developers helps startups in feature expansion, ongoing development, and scaling support to ensure high-end MVP and full-fledged product development.