Launching a startup is a race against time and a battle for resources. Getting your minimum viable product (MVP) into the hands of users is the most critical first step, but how you build it can make or break you. Should you hire one of the many MVP agencies out there, or try to build a team from scratch?
This guide walks you through everything you need to know. We will cover the pros and cons of hiring mvp agencies versus building in house, how to find the right partner, and what to look for in a proposal.
Why an MVP Agency Might Be Your Best Bet
For many founders, partnering with an agency is the fastest and most efficient path to market. It’s not just about writing code; it’s about leveraging a ready made system for turning ideas into products.
1. The Agency Advantage: Speed and Cost Savings vs. In House
Building an MVP with an agency can get you to market faster and for less money than hiring an in house team. You skip the lengthy recruiting process, which takes an average of 35 days just to hire a single developer in the US. An agency provides a full team of designers, developers, and QA specialists from day one, often cutting development timelines by 20 to 30%.
The cost benefits are just as significant. Outsourcing app development can reduce early development costs by 60 to 70% for pre-seed startups.
2. Leverage an Agency’s Expertise When You Lack Internal Resources
Hiring an agency gives you immediate access to specialized skills and product development experience. If you lack internal resources, a dedicated development team model can bridge the gap quickly. An experienced agency has established processes and can start delivering in weeks, not months.
They also bring a wealth of cross industry knowledge, helping you avoid common pitfalls that new founders often face. With nine out of ten clients reporting satisfaction with their outsourced partners, choosing the right agency allows you to focus on your core business, like customer discovery and marketing, while they handle the technical lift.
3. Knowing the Tradeoffs of an In House Team for Your MVP
Building your MVP with an in house team offers maximum control, but it is a slower and more expensive path. After spending 30 to 45 days hiring each developer, it can take another several months for a new team to become fully productive. A single full time developer in the US can cost anywhere from $90k to $220k per year, plus benefits.
The primary reason to go in house is to retain complete control over your intellectual property (IP) and build internal knowledge from the start. If your technology is your core secret sauce, this might be the right long term play. However, you have to weigh this against the significant delay and cost, especially when a specialized agency could get your product to market and validated much faster.
Understanding the Different Types of MVP Development Agencies
Not all mvp agencies are the same. They range from massive global firms to small, specialized studios. Understanding the landscape will help you find the perfect match for your startup’s needs and culture.
4. Large Outsourcing Companies
Big IT consultancies have massive teams and can handle almost any technical challenge. The upside is a wide range of specialists and established processes. However, for a startup MVP, their size can be a disadvantage. Layers of bureaucracy and internal approvals can slow things down, and your small project might not get the attention it deserves among their Fortune 500 clients. Be mindful that you might speak with a senior partner during the sales process, but the actual work could be delegated to junior developers.
5. Mid Size Software Studios
A mid size software studio, with perhaps 50 to 200 employees, often strikes a great balance between reliability and agility. They are large enough to have stable processes and diverse skills but small enough that every client is important. These agencies frequently specialize in specific domains, like FinTech or SaaS, which means they can build faster by leveraging past experience. You get a dedicated team and fewer layers of management, making for a nimbler and more collaborative process.
6. Boutique, Founder Led MVP Studios
For early stage startups, a boutique founder led MVP studio can be a true game changer. These small agencies, often with fewer than 20 people, are run by individuals with startup DNA. They think like founders, prioritizing speed, lean principles, and business outcomes.
With a boutique team, you often have a direct line to the senior talent, or even the agency’s founders, who are personally invested in your product’s success. For example, a studio like Bricks Tech operates with a founder centric mindset, treating your product as their own and focusing on building what truly matters. This personalized approach and shared vision can dramatically increase your chances of a successful launch.
How to Choose the Right MVP Agency
Selecting the right partner is a critical decision. A structured evaluation process will help you look past the sales pitches and find a team that can truly deliver.
7. Watch Out for Red Flags When Evaluating an Agency
As you vet potential mvp agencies, keep an eye out for these warning signs:
A Lack of Questions: A good partner will challenge your assumptions, not just agree with everything you say.
Vague Timelines: If they can’t outline a week by week plan, they likely lack a clear process.
No Relevant Portfolio: An agency should be able to show you examples of similar products they have built.
An Unbelievably Low Price: A quote that is significantly lower than others may indicate cut corners or future hidden costs.
Poor Communication: Slow or unclear responses during the sales process will only get worse once a project starts.
8. A Process for Choosing the Right Partner
Start by defining your must haves, including budget, timeline, and any specific technical needs. Research and shortlist 3 to 5 agencies to evaluate more deeply. Use platforms like Clutch, get referrals, and conduct initial calls to gauge their understanding of your vision.
Compare their proposals side by side. Don’t just focus on cost. Nearly 57% of executives outsource to cut costs, but gaining access to new capabilities is just as important. A slightly more expensive agency with deep expertise in your industry is often a better investment in the long run. Some agencies even offer a trial period, like the fully refundable first week of development offered by Bricks Tech, which is a great way to test the working relationship with zero risk.
9. Key Selection Criteria to Focus On
When comparing mvp agencies, use a consistent set of criteria:
Relevant Experience: Have they built products in your industry before?
Technical Expertise: Are they proficient in a modern, scalable tech stack?
Startup Mindset: Do they understand lean principles and the need for speed?
Clear Communication: Do they have a structured process for updates and feedback?
Value and Flexibility: Does their pricing model align with your budget and potential for scope changes?
10. Prioritize a Startup Focused Mindset
Your agency should act as a partner, not just a vendor. Look for a team that understands the startup grind. They should be focused on helping you validate your idea and find product market fit, not just billing hours. Recall that 42% of startups fail due to no market need. A startup minded agency will help you avoid this by prioritizing core features and iterating based on user feedback. They should be comfortable with pivots and act as an extension of your founding team.
11. Insist on a Cross Functional Team
A successful MVP needs more than just code. It requires thoughtful design, solid engineering, and rigorous testing. The best mvp agencies provide a cross functional team with a project manager, UX/UI designer, developers, and a QA specialist. This integrated approach ensures that design, feasibility, and quality are considered in parallel, which prevents delays and results in a better final product.
12. Look for Clear Processes and Communication
A well defined process is a sign of a professional agency. Ask how they manage projects. For example, Bricks Tech outlines a clear MVP process with weekly sprints and demos that keeps you in the loop and allows for regular course corrections. Clear and frequent communication is non negotiable. A dedicated Slack channel and a single point of contact can make the entire process smoother and more transparent.
13. Check Their Portfolio and Case Studies
An agency’s past work is the best predictor of its future performance. Review their portfolio for projects with a similar scope or in a similar industry. Don’t just look at the visuals; ask about the results. Did their MVP help the client secure funding or acquire their first 1,000 users? For instance, one marketplace MVP built by an agency generated $15,000 in revenue in its first month. See Bricks Tech’s Taraki case study for a detailed example of outcomes and scale. These are the kinds of outcomes you should look for.
14. Ensure Flexibility and Scalability for Future Growth
Your MVP is just the beginning. Choose an agency that can grow with you. This means they should build your product on a scalable tech stack and be able to provide ongoing support or additional development resources as your needs evolve. A good partner will also facilitate a smooth handover if you decide to build an in house team later, providing clean, well documented code.
Where to Find the Best MVP Agencies
Now that you know what to look for, where do you find these great partners? Casting a wide net across a few key channels will give you the best options. If you prefer a fast, no‑obligation start, you can discuss your project with Bricks Tech to get tailored recommendations.
Online Platforms and Marketplaces: Websites like Clutch, GoodFirms, and Upwork are excellent starting points. They feature agency profiles, client reviews, and portfolios, allowing you to quickly shortlist potential candidates.
Startup Communities and Referrals: Tap into online forums like Indie Hackers or local founder groups. A recommendation from a fellow entrepreneur who has been in your shoes is incredibly valuable.
Social Networks (LinkedIn, Twitter): A simple post on LinkedIn or Twitter asking for recommendations can surface great leads from your professional network. You can also research agencies and their key team members directly on LinkedIn.
Startup Accelerators and Incubators: If you are part of an accelerator program, ask the program managers and mentors for recommendations. They have seen dozens of companies go through this process and often have a list of vetted agencies.
Your Personal Network: Don’t forget to ask friends, former colleagues, and advisors. A personal referral from someone you trust is often the strongest signal you can get.
Exploring Alternatives to Hiring an Agency
While mvp agencies offer a fantastic solution for many startups, it’s wise to consider all your options to make the most informed decision.
15. The In House Route
If you or your cofounder are technical, building the MVP yourself can save money and keep all knowledge internal. However, this path is often slower and requires you to wear multiple hats, taking time away from other crucial business activities.
16. Hiring Freelancers
Assembling a team of independent contractors can be more affordable than an agency, as you avoid paying for overhead. The challenge is that you become the project manager, responsible for coordinating everyone’s work and ensuring quality.
17. Using No Code or Low Code Tools
Platforms like Bubble, Adalo, and Webflow empower non technical founders to build functional MVPs with visual development interfaces. Gartner predicts that by 2025, 70% of new applications will use these tools. This can be an incredibly fast and low cost way to validate an idea, though it may have limitations at scale.
18. Finding a Technical Co founder
Bringing on a technical co founder in exchange for equity is a long term solution. They will be as invested in the product’s success as you are. This is often the ideal path, but finding the right person can be a long and difficult search.
19. The Hybrid Approach
You don’t have to choose just one path. Many startups use a hybrid model. For example, you could hire an agency to build the initial MVP and then bring on an in house team to take over development for V2. Or you could use no code tools to build a prototype and then hand it to an agency to build a scalable version. This allows you to optimize for speed, cost, and control at different stages of your journey.
Making Your Final Decision
Once you have a shortlist of agencies, the proposal they submit will tell you a lot about how they operate.
What Makes a Strong MVP Proposal?
A quality proposal should be more than just a price tag. Look for:
A Clear Scope Definition: They should restate your requirements in their own words, showing they understand your vision.
A Realistic Timeline: It should be broken down into weekly sprints with clear milestones.
Specific Deliverables: The proposal must list exactly what you will receive.
Transparent Pricing: A clear breakdown of costs and payment terms is essential.
Identified Risks and Assumptions: This shows they are thinking critically and planning for contingencies.
A thorough, professional proposal is a strong indicator of a well organized and reliable partner.
Frequently Asked Questions About MVP Agencies
Here are answers to some common questions founders have when considering working with mvp agencies.
How much does an MVP cost with an agency?
Costs can vary widely, but a typical MVP build often falls in the $10,000 to $50,000 range. The final price depends on the complexity of your features and the agency’s location. It’s always best to get a fixed price quote for a clearly defined scope.
How long does it take an agency to build an MVP?
Most mvp agencies can deliver a product in 4 to 12 weeks. Specialized studios focused on speed, like Bricks Tech, often deliver a complete MVP in just 4 to 8 weeks, allowing you to get to market and start learning from users incredibly fast.
Who owns the code and IP after the project?
You should always own 100% of the intellectual property. Reputable agencies will state this clearly in the contract, transferring all code, designs, and other assets to you upon final payment. If an agency is hesitant about this, walk away.
Will the agency use no code tools or custom code?
This depends on the agency and your project. Many modern mvp agencies use a hybrid approach, leveraging no code platforms for speed and custom code for complex or proprietary features. A good agency will recommend the best tech stack for your specific goals and be transparent about the pros and cons of their chosen approach.
