The verdict in three sentences
An MVP for an annual performance review SaaS aimed at SMEs with 50 to 300 employees costs, as a 2026 order of magnitude, between 35,000 and 70,000 GBP with an agency in Glasgow, for 10 to 16 weeks of development. The rule that protects the budget is simple: one core feature (the review campaign end to end), everything else waits for the first paying customers. With Innovate UK Smart grants or the Scottish Enterprise ecosystem and a target price of 3 to 5 GBP per employee per month, the MVP can be funded and validated before a pre-seed round.
What an HR SaaS MVP costs depending on how it is built
The day rate drives most of the bill. In Glasgow and Edinburgh, senior developers charge between 450 and 650 GBP per day in 2026, against 350 to 550 GBP nearshore (Portugal, Poland, Romania) for a comparable level.
| Delivery model | Day rate 2026 (GBP) | Estimated days | MVP budget (GBP) | Timeline | Main risk |
|---|---|---|---|---|---|
| Solo freelancer | 400 to 550 | 50 to 70 | 20,000 to 38,000 | 14 to 20 weeks | Key-person dependency |
| Glasgow agency | 450 to 650 | 70 to 105 | 35,000 to 70,000 | 10 to 14 weeks | High budget |
| Nearshore agency | 350 to 550 | 60 to 80 | 22,000 to 44,000 | 11 to 15 weeks | Remote coordination |
| No-code studio + developer | 350 to 500 | 35 to 50 | 12,000 to 25,000 | 8 to 10 weeks | Technical limits at 500 customers |
| Co-founding CTO (equity) | 0 in cash | 90 to 120 | 0 to 8,000 in tools | 16 to 24 weeks | Dilution and speed |
| Offshore team in Dakar (Kolonell) | Fixed price | Based on specs | 7,000,000 to 15,000,000+ FCFA (10,670 to 22,870 EUR) | 12 to 16 weeks | Specs must be locked |
Market figures are 2026 estimates. The Kolonell line is its complex application grid, suited to a multi-tenant SaaS with authentication, roles and billing.
The typical team and MVP scope
A successful MVP runs on a small team and a short scope. The classic mistake is to include skills management, training plans and career development tracking in V1.
| Role | Effort over 12 weeks | Indicative cost (GBP) | Deliverable |
|---|---|---|---|
| Product manager / UX | 15 days | 7,000 to 9,000 | Manager and employee journeys, mock-ups |
| Senior full-stack developer | 45 days | 20,000 to 28,000 | Web app, API, database |
| Front-end developer | 15 days | 6,000 to 8,000 | Responsive interface |
| Tester / QA | 6 days | 2,000 to 3,000 | Test plan, acceptance |
| DevOps and security | 4 days | 2,000 to 2,800 | UK or EU hosting, backups |
Recommended MVP scope: campaign creation, review form templates, employee self-assessment, e-signed summary, HR dashboard showing completion rate. Out of scope: HRIS connector, AI analysis of reviews, native mobile app.
Funding and business model
Innovate UK Smart grants can fund innovative projects from 25,000 GBP upward, though competition is tough, while Scottish Enterprise and Techscaler support early-stage founders in Glasgow with programmes and introductions to angel networks such as Archangels, which typically invest 100,000 to 500,000 GBP.
On revenue, at 4 GBP per employee per month, a 120-employee SME brings 5,760 GBP per year. Thirty customers of that size give about 173,000 GBP ARR, a threshold pre-seed funds often expect before investing 400,000 to 1,000,000 GBP.
Mini case study
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Fiona, former HR director of a Glasgow manufacturing group, prices her MVP with a nearshore agency at 34,000 GBP over 12 weeks. She raises 20,000 GBP from an angel and covers the remaining 14,000 GBP from savings. With a paid pilot at 8 SMEs of 100 employees at 4 GBP per employee per month, she collects 3,200 GBP per month, 38,400 GBP per year. The MVP pays for itself in recurring revenue in under 12 months, a concrete argument for her pre-seed deck. This calculation is illustrative.
FAQ
How long does it take to ship an HR SaaS MVP?
Count 10 to 16 weeks depending on the delivery model, including 2 weeks of scoping. Beyond 16 weeks, the scope is almost always too wide.
Do HR records require special hosting?
Annual reviews are personal data under UK GDPR, so UK or EU hosting with proper contracts is enough, for 40 to 250 GBP per month at launch. Health data would add stricter requirements.
Can grants and angel money be combined?
Yes, it is common: grant funding plus 20,000 to 50,000 GBP of angel money covers a full MVP. Grant bodies usually require match funding from the company.
What price should an annual review SaaS charge?
The 2026 market sits between 3 and 5 GBP per employee per month, with a monthly minimum of 120 to 250 GBP. An entry price of 4 GBP makes SME pilots easier.
Who owns the MVP source code?
Require full assignment of intellectual property in the contract and Git repository access from week one. Investors check this systematically in due diligence.
Let's scope your project. Describe your SaaS core feature, your indicative budget and your funding date: we will propose an MVP scope, a team and a 12 to 16 week plan. Detailed quote within 48 h. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
