video game company business plan

In-Depth Guide to Create a Business Plan for Video Game Studio

• Last Modified: February 24, 2023

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This article will first discuss the motivations and advantages of having a business plan. If you’re launching your first game, then a business plan might not be necessary now. Then, the main sections of a business plan will be detailed and examples of a fictitious studio will be given (in green).

Throughout this guide we cite a fictional video game studio for ease of reading, but all of the entrepreneurial and management mechanics explained are just as relevant and useful for a self-employed person, for an informal group of devs or for any industry organization that does not necessarily see itself as a studio yet. Each plan business is different. This guide is an example of a structure and should be modified based on the reality of your studio and projects.

Table of Contents

You might not need a business plan  now.

Before starting, I must warn you. A well-crafted business plan can be a valuable tool for your video game studio as you navigate the growth of your business, but it is not always essential, especially for indie game developers launching their first game. Most of the time, I recommend to start building a pitch instead of full-fledged business plan. This article will help you to do so: Mastering the Art of a Successful Video Game Pitch: A Guide for Indie Game Developers .

(If you are still not sure, my contact info are at the very bottom of this page.)

What is a Business Plan in a Video Game Studio Context

A business plan is an essential tool for setting goals and outlining a clear path to achieve them in the context of your video game studio. As the owner or founder of a video game studio that has already launched a first video game, I understand that you are looking for advice on how to create a comprehensive and compelling business plan. The plan not only showcases your game(s) but provides a comprehensive overview of your company, team, resources, finances, marketing strategies, player community, operations, and development processes.

The purpose of a business plan is to present a clear and concise picture of your studio, from its past and current operations to its future plans. It’s an opportunity for you to showcase your vision and drive to potential investors, partners, and stakeholders, demonstrating that you have a solid understanding of your industry and market, as well as the skills and resources necessary to achieve your goals.

Why  and When a Video Game Business Plan

As the owner/founder of a video game studio, you may find yourself considering the creation of a business plan at various stages of your business journey. Whether you’re just starting out or have already launched your first game, a well-crafted business plan can help bring clarity and focus to your future plans and projects. Here are some benefits you can expect to gain by creating a business plan:

• Ensure a strong start for your business
• Clearly define your short, medium, and long-term goals
• Attract investors or launch a successful crowdfunding campaign
• Build credibility with partners and employees
• Streamline your development process and manage operations efficiently
• Secure publishing partnerships
• Hire top talent, like an executive director or key employees
• Explore opportunities for acquiring or merging with other businesses

Executive Summary

The executive summary is an important section of your business plan. It provides a condensed overview of the entire plan, including the financial appendices, in a one-page format. This section is usually written last, after all other sections are complete.

For your convenience, I have included examples in this guide that use a fictional video game studio (Emperor’s Studio) and its first game (Empy). Y ou will find these examples written in this color.  If you want the .docx template, simply use the contact form at the bottom of this page to request it from me.

Business Overview

In this section, we give an overview of the current business and its past.

Introduction

Start with an introduction paragraph and explain how the studio was founded (if applicable). Describe your tasks, those of your partners and employees if you have any.

Emperor’s Studio is currently managed by two people. Founder 1 & Founder 2 are longtime partners in the game development industry who strive to keep the gameplay, fun and quality at the highest level in their games. The business is a small indie game studio based in [a city]. Founder 2 is the main programmer, developer, and designer while Founder 1 is the concept and pixel artist, scenario writer and community manager.

The company focuses on combining video games, comics with the interactivity and interconnectivity of an ever-expanding multimedia universe called the Empy’s World. The studio released its own previous game on Steam and have collaborated with many [other businesses and influencers] on projects such as [project’s names].

Management team / Our team

Take care to present your team from its best angle. Describe the professional experience of each member and the detailed responsibilities within the studio

Be consistent with the CV of each member and his Linkedin, because these are details that could be verified later by future investors or partners.

A photo of you, your group and your colleagues will make the document warmer. After all… other humans will read you!

A Word From Us

When possible, we suggest that entrepreneurs write a personal message (maximum 100 words) to further personalize the business plan. This is the kind of inspirational and public message that could be found in the “About us” section of your website.

Business Ownership & Structure 

Specify whether it is an incorporation, a general partnership, a single self-employed worker, etc. 

If applicable, what is the structure of the company’s shares? If you anticipate that the latter will be subject to change in the near future, you can indicate it.

If you don’t know yet, a good start to understand the best structure could start by reading the Wikipedia List of legal entity types by country or to do a quick Search on Google with “Business Structure + [your country]”. Most country have an article about this subject on their website (look for .gov website). 

Emperor’s Studio is registered as a limited liability company (LLC) and is 50% owned by Founder 1 and 50% by Founder 2.

Collaborations / partnerships

Have you collaborated with other companies, studios or artists? Whether it is a contract that you have awarded to others or work for which you have been commissioned, in both cases, it is relevant to explain it.

Collaborator 1 is a veteran book cover and sequential artist who has been working with us since 20xx on Project 1 to help develop our artistic vision. Collaborator 2 and 3 are experienced pixel artists that we have worked with on since 20yy. Collaborator 4 is a skilled and versatile musician that has been able to adapt and implement the audio vision that we wish to execute within our games.

Key planned hires

Explain the type of employee you will need to hire in the near future. Detail each profile sought.

Previous games and collaborations 

Showcase your already launched games. If you have collaborated on the development and release of a game, it is relevant to present it as well, without forgetting to explain how your studio was involved in it.

Current Development : Empy

( empy is the name of the fictional game).

Talk about the current development. If it is not started but you have plans or an idea of ​​the main aspects that will make it up, demonstrate them.

Some aspects that could be mentioned:

• Progression
• Preview Video (trailer)
• Player Experience
• Your future gaming community, but rather briefly, as this section will be scrutinized in much more detail in the sections that follow.
• A website for this game

Other merchandise

If you are going to create and sell promotional merchandise, it would be a good idea to indicate so. For example:

If you have a visual elements, it’s perfect to show them.

Market Analysis

This section presents and analyzes the market. It is very useful if you plan to present it to potential investors or partners who are not in the same industry as us. It allows you to define trends that are specific to your game / studio, for example, a specific game category such as Survival RPGs .

Global Video Game Market

The global video game market value was estimated at xxx USD for the year yyyy. It is also estimated that the market will reach zzz gamers in yyyy and a market value of xxx USD.

Industry Trends

As the owner/founder of a video game studio, it’s important to keep a pulse on the industry trends that may impact your business. In the “Industry Trends” section of your business plan, you should aim to provide a comprehensive overview of the current state of the video game industry, including market size, key players, and any significant trends or shifts that are likely to affect your game(s) and target customers.

Make sure to provide data and research to support your claims, such as industry reports or data from trusted sources. This will demonstrate to potential investors and stakeholders that you have a deep understanding of the industry and that you have taken the time to thoughtfully consider the competitive landscape.

I recommend reading this article I wrote about tools that can help searching video game market data for market size and trends.

RPG & Survival RPG

Survival games encourage the exploration of an open world and keep the survival parts of these games a central aspect of the player’s experience, while in RPG, the player controls the actions of a character immersed in some well-defined world .

Based on market research made from X games available on Steam, Y are tagged both as a RPG and a survival game. 

(Include all your sources)

Competition analysis

It’s important to understand the market environment you’ll be operating in, which includes not only supply and demand but also the competition. That’s why in your business plan, it’s crucial to analyze your direct competitors – studios that have already released or are planning to release a game similar to yours. This will give you a better understanding of the products and development studios in your market.

RPG + Survival Games

Among the best rated games having both RPG and Survival tags, we can find:

•     Yuppie Psycho
•     Darkwood
•     Don’t Starve
•     World of Horror
•     Terraria
•     FTL: Faster Than Light
•     Starbound
•     The Riftbreaker: Prologue
•     Risk of Rain
•     The Binding of Isaac
•     Fallout Series
•     STALKER: Call of Pripyat
•     Dig or Die
•     Foraging
•     Craft In Abyss

Development Studios

The company anticipates moderate competition from development studios of all sizes specializing in Survival RPG game development.

The table below present notable studios that have released at least one game of this genre.

This is where we get into the nitty-gritty details of your plan. I believe that all of the following sections are critical to your success, as they will outline exactly how you plan to achieve your goals. These sections will likely be the focus of discussions and questions with your readers.

Development Schedule and Budget

In this section, you will want to detail the projects you are currently working on or plan to work on soon. Start with a high-level overview and then break down each project into smaller, more manageable parts, providing time estimates for each step.

Milestones (Tied to the Development Schedule)

This section is similar to the previous one, but focuses on milestones that are not directly related to the development process.

• Create a detailed plan for communication, presence and visibility on the company’s social networks, but also through influencers.
• Create a detailed budget explaining the allocation of funds for each of the projects and subprojects required for the development of the game.
• Setup accounting ledgers
• Plan the necessary hiring and projects (if required)
• Create a detailed budget
• Month 1: Start of development
• Game Development / Project / Hiring Milestones
• Half of year 2: game launch
• Net sales of 270K$ during year 2 
• First 1,000 positive reviews during year 3
• Net sales of $ 2.6M$ during year 3

Technology, Software and Tools

This part allows you to list the software, technologies and tools that you use.

Location & Facilities

Indicate your offices and premises if applicable and if you think this would be relevant for the reader. For example, to explain a future business expansion, you can indicate the number of square feet as well as the price of the rent.

We plan to move into a room of approximately xxx square meters very soon, which will cost YYY $ per month. This new space will allow us to carry out the expansion we desire, to hire staff and for everyone to work and meet physically.

Distribution and Sales Plan

As the owner of a video game studio, it’s crucial to have a clear plan for distributing and selling your games. Whether you choose to sell your games exclusively through online distribution platforms like Steam or through physical merchandise, it’s important to outline the details in this section.

If your sales model is entirely digital, simply state that fact in this section. But if you also plan to sell physical products, such as collectibles, you can use this section to explain your approach.

Regardless of your distribution and sales channels, be sure to include the selling price of your game and any other products you offer in this section of your business plan.

Empy will be on sale exclusively through the Steam platform at a price of 19.99 US.

Marketing Plan

marketing plan is a pillar for the success of your business, and in some cases, it may be wise to start with this section before moving on to the rest of your business plan.

The marketing plan section should answer the question, “How do I market my game?” by covering traditional marketing tactics and personalizing them to the video game industry. This section will summarize your marketing objectives, which will be detailed further below.

It’s worth noting that marketing is often the reason why many game developers fail to reach their goals. To ensure that your marketing plan is as comprehensive as possible, you may consider reading our guide “ Indie Video Game Marketing Plan: Stand Out in a Crowded Marketplace ” in parallel with working on this section of your business plan.

Marketing Objectives

We summarize here the objectives of the marketing plan which will be detailed below.

Emperor’s Studio ‘marketing objectives are to:

• Solidify brand identity as a notable studio in the specific genre of Survival-RPG
• Secure sales of the games and products
• Highlight the company’s commitment to continuous product improvements that meet the specific needs of its community and customers
• Increase and maintain the number of players within the community of Emperor’s Studio
• Start and increase the fan email list

Video Game Marketing Campaign Strategy

To effectively reach as many players as possible and achieve a successful return on investment, your marketing strategy should take into account multiple aspects.

A strong website will showcase your latest news, provide text content and articles that help you stand out in search engines for your games and products, and serve as a hub for press releases. By doing so, bloggers, journalists, and media outlets will have access to all the information they need to spread the word about your games.

To break down your marketing strategy into manageable parts, consider dividing it into three categories: pre-launch, launch day, and post-launch.

Pre-release marketing tactics

Explain the marketing efforts you plan to make before the game launches. Ideas include:

Steam store page, tags and notification. 

• Developer announcements. 
• Steam Store Widget. 
• Localization (Languages ​​and translation). 
• ‘Coming soon’ Steam Page. 

Connect with Steam Curators

Valve published a 30 minute video about Building Your Store Page and Publishing Your Application.

This explain how to setup your store and game pages. Their graphical assets template can be found here .

For each studio’s game that will be released on Steam, including Empy, a page for the game will be created before the game is released. It will contain all the information that identifies the game, three screenshots and its characteristics so that it can be discovered by the gaming community, including thematic, gameplay, art style, and sub-genres. The potential customers can add it to their Wishlist and steam will notify them when it will be released and available to purchase. The potential customer will also be notified if the game is discounted and she / he has not purchased it yet at that moment.

Developer announcements

Announcements will be made from the website, but also through the Steam system, to share the progress that is gradually leading to the big day of the launch. It’s a way to create and maintain the “hype” before its release, and to be able to interact with the community that is interested in it.

Steam Store Widget

Steam provides a way for developers to integrate a widget into their website that displays a short description of the game and links to the Steam purchase page. When the latter has not yet been released, we can then see the “Add to Wishlist” options and this becomes a way of quickly creating a link when a potential player goes to the website with her / his Steam Wishlist, thus strengthening his commitment to the purchase.

Language and translation (localization)

All dialogues will be in json for easy translation. Thus, the game benefits from increased visibility towards players speaking one of the languages ​​into which the game will be translated. Thus, by considering all non-English speaking players who represent 58% of Steam users , Emperor’s Studio is strengthening its place in the market and securing market share that is impossible otherwise.

‘Coming soon’ Steam Page

A “Coming Soon” page will be created so that the game can appear in the steam search and that players can add the product to their Wishlist. Then they will be notified on the launch day.

Emperor’s Studio will contact Steam curators from the platform’s already integrated tools that allow 100 curators to be offered keys for their members to review the game. Therefore, the company will carefully choose the best 100 curators who have the best profile and audience aligned with Empy.

Release Day Marketing

Explain the marketing efforts you plan to deploy the day the game’s launch.

When the studio will launch its games, the official Emperor’s Studio Twitch channel will be live and broadcast a playthrough. In order to accentuate this hype, the company will sponsor influencers to play live on their own Twitch channel as well.

After Launch Marketing

Explain the marketing efforts you plan to deploy after launching the game. Here are some ideas:

Steam Organic Visibility

• Influencers campaigns (read our Ultimate Indie Game Guide to Influencers)
• Social media & Advertising
• Game festivals (PAX)

Emperor’s Studio is aware that the launch of the game is not the finish line, but rather the start line. All the work and planning done previously will allow better visibility and launch of the game and will also facilitate the progress of the next marketing efforts below.

Steam wrote in its developer documentation that when a game is successful, it could be shared on the platform’s main page. We therefore speak of the principle of “organic visibility”. Concretely, the sections on Steam are as follows:

• News and trends
• Top Sellers
• Promotions (when activated)
• Friends news feeds when the purchase of the game is made, screenshots are shared and achievements earned
• The discovery queue

In addition, for each major update, if there is any, the studio will create and share its patch note with the Steam community in order to benefit from increased visibility of the platform, which Steam sometimes calls “Update Visibility Rounds”.

Beyond all this, a “standard” visibility is offered through the Steam catalog based on the tags and style of each studio game.

Connect with Indie Games Influencers (on Youtube, Twitch, Facebook Gaming…)

The number of unique channels streaming on Twitch reached 10.6 million in 2020 (Q3) while 913,000 unique channels streamed to YouTube Gaming the same year  [1] , reaching 100 billion hours of video game content watched on the platform.  [2] Therefore, among the highest marketing priorities of the studio are the promotional campaigns that will be carried out by some of these influencers for the studio, in the form of contracts and sponsorships. Emperor’s Studio will carefully select the channels that are most likely to contain an audience interested in the company’s games in order to obtain the best return on investment.

A comprehensive tactical plan could be developed to effectively execute this marketing aspect. This will include among other things the communication strategy with influencers (what will be presented and “how”), an exhaustive list of interesting influencers with information on their channel (to get in touch in a personalized way) and the follow-up method.

Social Media & Advertising

Social networks such as Facebook, Twitter, Twitch, Youtube and Discord, although they all have a slightly different function, are also a pillar of the marketing strategy at Emperor’s Studio. These social networks will serve to inform fans, interact with them through various means, promote products’ launch and consistently show presence to them over a long period of time, unlike live streaming with influencers whose goal will not be to give a long-term and multifaceted experience around the studio’s universe. Some social networks like Twitter, but also Facebook, can be used to communicate relevant information for the press and journalists in order to receive press coverage.

Again, a comprehensive tactical plan could be developed to effectively execute this particular marketing aspect. Marketing managers at Emperor’s Studio will use it to understand communication strategy, quantify objectives, perform analysis and control of various KPIs, and plan the release schedule.

Game Industry Events

Participating in industry events such as GDC, PAX and MomoCon Convention and many other is part of Emperor’s Studio ‘marketing strategy. This investment should help acquiring contacts, enhancing the brand reputation and increasing awareness among our audience (the gaming community).

A mailing list is one of the most intimate and solid ways to connect with fans in a studio. It also helps to get to know them better. With a good communication strategy in place, the studio will be able to use this powerful marketing tool in the long term. If you choose to adopt this strategy, indicate and explain it.

Intellectual Property

This section is often overlooked by business plan writers, but is sought after by readers, especially in a software development context. Future partners or investors want to know if you own the IP, and if so, what does it include in more detail.

Emperor’s Studio’s games are designed to ensure the protection of its revenue-generation potential and long-term sustainability of the business. The Company has developed an IP committee mandated to establish policy and guidelines surrounding IP application and access to confidential information. The IP strategy surrounds the software algorithm, networking and database design, game play and game design elements. Therefore, the storyline, characters, arts, music, and packaging design are copyrighted.

Key metrics (KPI)

In summary, Key Performance Indicators (KPI) are indicators that allow you to compare your studio’s results against set objectives or industry standards. KPIs can be marketing or operational in nature in order to measure performance, but they can also be associated with company finances.

Each KPI can be further developed in the plans concerning them and by the person responsible according to the strategies and objectives evolving over time, but while keeping a modest number of KPIs so that they remain effective, meaningful and SMART (Specific, Measurable, Attainable, Relevant, and Time-bound).

In the case of Emperor’s Studio and its icming launch, the following KPIs would be the most important:

• Steam Review score and number
• Steam community and player engagement
• Steam Wishlist, paid download
• Influencers reviews and views
• Google Analytic (website and Alexa)
• Facebook likes, impressions and engagement
• YouTube views, engagement and subscription
• Backlinks from press coverage

Partnership with a publisher

Explain the business relationship you have with your publisher. If you don’t have one and / or are currently looking for one, it’s a good idea to indicate it here. The article Publishing Deal for Indie Video Game: how to research, find, negotiate and secure your partnership with a publisher could be useful.

Emperor’s Studio is currently working to identify video game publishers having a “fit” with the studio, its culture and its vision in order to pitch its future development projects and gather and analyze the best offers.

The company also considers the possibility of doing business with independent indie financing funds (sometimes called “syndicate”) for the advantages that this could provide in the longer term.

Financial Plan

Key assumptions.

The key assumptions summarize what must happen in order for the business plan to be carried out correctly. They can be taken from historical company data, industry benchmarks or smart guessing . These assumptions can be revised and evolve over time, just like the financial plan.

The following assumptions were made in order to build the financial planning:

• An amount of 250,000 $ will be raised from a publisher or investors to develop and market Empy.
• The number of copies sold by the end of Year 3 will be 73,940.
• The sales distribution of these 73,940 sales has been based on the Product Life Cycle theory.
• The sale price will be $ 20 US.
• A Steam Commission of 30% of the sales is planned for each sale.
• The proportion of games sold at a discount compared to the total number of copies sold is planned at 25%.
• The average discount of the sale is forecasted at 30%
• The portion of the revenue going to publisher is estimated at the full amount of the loan plus 25% of the sales during years 2 and 3.
• The debt owed to the publisher will be totally cleared at the end of year 3. The total amount is planned at 250,000 $ (initial amount) plus 25% of the sales during year 2 and 3, for a total of 469,187 $
• Once the game launched, an additional amount of 50,000 $ will be spend on marketing, 50% during the first 6 months and 50% for the following 12 months, mainly funded from the net profit of the sales.
• At year 3, the amount of cash, before the corporate taxes and dividends, and after having paid the publisher loan, should be of $ 187,723.

Use of Funds

Explain how the funds will be used and the resulting financial plans. May be accompanied by financial models, data and tables.

As indicated in the financial forecasts below, 100% of the amount will be allocated to the development of the game Empy and its marketing. The studio will raise $ 250,000 US.

Sources of Funds

Explain where the funds come from if they have already been raised.

Currently, Emperor’s Studio is actively seeking the best editor or investor for its project.

Financial Forecasts

Financial forecasts provide an understanding of how a company’s finances will take shape in the future. It is important to remain realistic and consistent in order to be convincing with seasoned investors.

Financial forecasts are divided into three broad categories:

• Income Statement: shows income versus expenses for a given period of time (usually 12 months).
• Cash Flow Projection: It will show how the money will be used and prove that a positive cashflow will be generated in order to be able to repay debts.
• Balance Sheet: This section is often compared to a “snapshot” of the business at a future date showing the net worth of the business with assets, liabilities and equity.

If you need a template, simply use the contact form above to request one from me.

The appendix consists of attaching any document that could be useful and complement the business plan. Sometimes it can be a pitch deck to present the game that is coming soon in a much more visual way. 

The details of the financial plan are shared as an appendix in Excel format. 

Additional Resources

• Send me a message (below) so we can discuss your business plan, publisher research or any other project!
• My lengthy guide on (Indie) Game Marketing Plan – Stand Out in a Crowded Marketplace should help you understand, elaborate and write your marketing plan in much more details
• The Ultimate Indie Game Guide to Influencers could be helpful if you plan to launch an influencer campaign for your game
• If you think a crowfunding would be the right way to fund your development, I covered the topic in our Kickstarter for Indie Games: A Comprehensive How-to Guide with Examples, Tips and Templates
• Liveplan : a platform that streamlines the drafting process of writing a business plan and automates many steps in the creation of financial forecasts.
•  Valve’s article about Steam’s Features And Tools, Marketing

If you have any questions or comments about this article, feel free to let me know in the form below.

Mastering the Art of a Successful Video Game Pitch: A Guide for Indie Game Developers

Creating a Winning Business Model and Competitive Analysis for Your Indie Game

Lean Startup Principles for Indie Game Development: Planning, Prototyping and Launching Your Game

Publishing Deal for Indie Video Game: how to research, find, negotiate and secure your partnership with a publisher

How to Successfully Raise Funds for Your Video Game Studio

How to Put The Right Price on a Video Game – A Guide for Indie Studio

Feel free to reach out to me via Discord  at   Galabyca#5789  (this is case sensitive). You can  share me your project and we’ll discuss how I can help you. Additionally, if you have any comments or questions about the last article, don’t hesitate to send them my way through Discord as well .

How to Start a Video Game Company

Video game businesses design and program video games played on consoles, PCs, cell phones, and virtual reality devices. These games are purchased online and in brick-and-mortar stores. Video games often prove quite powerful in terms of providing joy, boosting confidence, improving hand-eye coordination, and connecting people (particularly with the advent of online gaming).

Learn how to start your own Video Game Company and whether it is the right fit for you.

Ready to form your LLC? Check out the Top LLC Formation Services .

Start a video game company by following these 10 steps:

• Plan your Video Game Company
• Form your Video Game Company into a Legal Entity
• Register your Video Game Company for Taxes
• Open a Business Bank Account & Credit Card
• Set up Accounting for your Video Game Company
• Get the Necessary Permits & Licenses for your Video Game Company
• Get Video Game Company Insurance
• Define your Video Game Company Brand
• Create your Video Game Company Website
• Set up your Business Phone System

We have put together this simple guide to starting your video game company. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas .

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

What will you name your business?

• What are the startup and ongoing costs?
• Who is your target market?

How much can you charge customers?

Luckily we have done a lot of this research for you.

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Video Game Company Name Generator

If you operate a sole proprietorship , you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name , we recommend researching your business name by checking:

• Your state's business records
• Federal and state trademark records
• Social media platforms
• Web domain availability .

It's very important to secure your domain name before someone else does.

Want some help naming your video game company?

Business name generator, what are the costs involved in opening a video game company.

The business requires numerous computers, computer monitors, specialized computer software, printers, video game consoles, employees, insurance, and a facility to create the games. Plan on investing tens of thousands of dollars in the initial equipment and facility. However, if you plan on launching a video game business from your home, apartment or other space without the assistance of a staff, it is possible to create a game with a high-powered computer and specialized software. Though this approach will save plenty of money, it will prove to be a Herculean effort unless you have extensive experience making video games.

What are the ongoing expenses for a video game company?

Hardware and software must be replaced and updated. Budget at least $200 to 500 per month for hardware replacements and software upgrades. Plan on spending several hundred dollars per month on utilities, office sundries, and high-speed internet. Employees who work on various parts of the game will command a salary between $40,000 and $100,000 or more per year. A manager, marketing expert and accountant will command a yearly salary of $30,000 to $60,000. A receptionist and beta testers will earn $8 to $15 per hour.

Who is the target market?

The target market is avid gamers. Everyone from kids to middle-aged adults play video games. Millennials are especially passionate about video games. It makes sense to target these young adults as they have enough discretionary income to purchase video games on a regular basis.

How does a video game company make money?

This business makes money by creating fun and intriguing video games for video game consoles, PCs and arcades. These games are sold to the masses. There is also the possibility of generating money through merchandising, like creating statuettes, T-shirts, etc.

Video games typically cost between $19.99 and $69.99. In general, high-quality video games are sold for $49.99 to $59.99 when brand new.

How much profit can a video game company make?

This type of business has the potential to make hundreds of millions of dollars. Video games have never been more popular. The rise of online gaming has made video games that much more appealing to the masses. The profit potential is unlimited.

How can you make your business more profitable?

Give gamers the option of purchasing in-game upgrades. As an example, Activision Blizzard has made millions through in-game upgrades without investing a considerable amount of money in developing additional games or extensive programming for existing games. It is also possible to establish agreements with console providers to secure a portion of the proceeds stemming from fees paid for online play.

Want a more guided approach? Access TRUiC's free Small Business Startup Guide - a step-by-step course for turning your business idea into reality. Get started today!

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship , partnership , limited liability company (LLC) , and corporation .

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your video game company is sued.

Form Your LLC

Read our Guide to Form Your Own LLC

Have a Professional Service Form your LLC for You

Two such reliable services:

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services . You can choose to hire a registered agent or act as your own.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

You can acquire your EIN through the IRS website . If you would like to learn more about EINs, read our article, What is an EIN?

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil .

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history , which can be useful to raise money later on.

Recommended: Apply for an easy approval business credit card from BILL and build your business credit quickly.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate a video game company. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits .

Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses .

Trademark & Copyright Protection

If you are developing a unique product, concept, brand, or design, it is prudent to protect your rights by registering for the appropriate trademarks and copyrights.

Learn more about trademark and copyright protection

The nature of legal requirements in distance education is ever changing, especially in regards to copyright laws. Here is a frequently updated resource, which can help keep you aware of the legal requirements .

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance . This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance . If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

FInd out what types of insurance your Video Game Company needs and how much it will cost you by reading our guide Business Insurance for Video Game Company.

STEP 8: Define your brand

Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.

If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners , we'll give you helpful tips and advice for creating the best unique logo for your business.

Recommended : Get a logo using Truic's free logo Generator no email or sign up required, or use a Premium Logo Maker .

If you already have a logo, you can also add it to a QR code with our Free QR Code Generator . Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.

How to promote & market a video game company

Connect to prospective game buyers through the channels they are most frequently exposed to. Most gamers are active on the web including social media, YouTube, and game streaming sites. Advertise on these sites and services. Some video game companies have also found success advertising with TV commercials and magazine ads. The promotional method your company settles on will ultimately hinge on the type of game you are attempting to sell. Perform market research to determine the appropriate mediums to best connect with video game players who are most likely to be interested in the particular video game(s) your company creates.

How to keep customers coming back

The best way to attract and retain customers is to create a high-quality video game that proves enjoyable for a long period of time. Plenty of video game players develop an allegiance to specific game-making companies based on their enjoyment of the company's initial games. Strive to develop a deep and meaningful connection with gamers by providing them with enjoyable content and they will become loyal customers. Also, consider offering a free download of one of your game's stages or levels to whet consumers' appetites.

STEP 9: Create your business website

After defining your brand and creating your logo the next step is to create a website for your business .

While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.

Here are the main reasons why you shouldn’t delay building your website:

• All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
• Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
• Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.

Recommended : Get started today using our recommended website builder or check out our review of the Best Website Builders .

Other popular website builders are: WordPress , WIX , Weebly , Squarespace , and Shopify .

STEP 10: Set up your business phone system

Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.

There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2023 to find the best phone service for your small business.

Recommended Business Phone Service: Phone.com

Phone.com is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.

Is this Business Right For You?

If you are looking for a way to entertain and provide people with an opportunity to enjoy a shared experience, starting a video game business will prove quite rewarding. Video games bring people together in-person for fun and exciting gaming experiences. They also connect people by way of online gaming experiences. It will certainly help to have a background in electrical engineering, design and/or computer science if you decide to start a video game business.

Want to know if you are cut out to be an entrepreneur?

Take our Entrepreneurship Quiz to find out!

Entrepreneurship Quiz

What happens during a typical day at a video game company?

Each group of specialists works on its unique portion of the game(s). Designers focus on generating aesthetically pleasing game graphics. Programmers write the game's code. Writers create the game's storylines. Testers play the game in-depth to ensure it doesn't have bugs (flaws). The video game company owner often serves as the overarching manager, delegating work and making executive decisions. Meetings are quite common to ensure each group of specialists is on the same page as the game progresses.

What are some skills and experiences that will help you build a successful video game company?

Making video games is a complicated endeavor. It is not enough to simply enjoy video games. The best video game company entrepreneurs have a genuine interest in computer programming, electrical engineering, design, and script writing. Ideally, the business owner will have experience in each of these realms. It will also help to have a business background in which the entrepreneur has established and nurtured relationships with other professionals. The relationships you form in this business will go a long way in determining your company's success.

What is the growth potential for a video game company?

The video game industry is growing at quite the rapid pace. Video games are incredibly popular due to recent improvements in graphics, the rise of online gaming, and the arrival of virtual reality technology. Build a successful game and your company will have the potential to grow quite rapidly. The key is to make a name for your company with one hit game that builds a fan base and generates momentum toward additional titles.

TRUiC's YouTube Channel

For fun informative videos about starting a business visit the TRUiC YouTube Channel or subscribe to view later.

Take the Next Step

Find a business mentor.

One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.

Having a support network in place to turn to during tough times is a major factor of success for new business owners.

Learn from other business owners

Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.

Resources to Help Women in Business

There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:

If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.

What are some insider tips for jump starting a video game company?

Network with video game industry experts before launching your business. Find out the exact software and hardware necessary to make state-of-the-art video games. Ideally, you will not attempt to wear numerous "hats". Hire true professionals who have an educational and professional background in various aspects of video game creation, from designing game graphics to programming, physics, script writing and beyond.

Do not assume your first game will be a hit. Oftentimes, it takes years to develop a high-quality video game that reaches a mainstream tipping point. Stick with the business, give your team time to perfect their craft and you will eventually succeed in this competitive business. Above all, the games your company creates should be highly unique. If they are similar to other offerings, generating sales will likely prove difficult.

How and when to build a team

A team is essential to your video game company's success. Even if you are a “jack of all trades” in the context of game-making, creating a game will prove much easier if you add specialists. Hire game designers, programmers and writers to get the company off the ground. You can add beta testers, a manager, an accountant, a marketing expert, a receptionist and other professionals as time progresses.

Useful Links

Industry opportunities.

• International Game Developers Association
• Entertainment Software Association
• Higher Education Video Game Alliance

Real World Examples

• Avalanche Studios

Further Reading

• Five Realistic Steps To Starting A Game Development Company
• Advice From a Successful Video Game Company Owners
• Profile on a Successful Company
• Guide to Entering the Industry

Have a Question? Leave a Comment!

• Business Ideas
• Registered Agents

How to Start a Video Game Company in 14 Steps (In-Depth Guide)

Updated:   February 9, 2024

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The video game development market is on the rise. With an estimated global evaluation of $217.06 in 2022 and a compound annual growth rate (CAGR) of 13.4% from 2023 to 2030, now is the time to get involved. For gaming companies looking to make a mark, this is a great year to put out your first game.

The good news is that today’s tools, technology, and distribution platforms make game development more accessible than ever. With the right mix of creativity, business savvy, and persistence, the opportunity is there.

This guide will walk you through how to start a video game company. Topics include market research, competitive analysis, registering an EIN, obtaining business insurance, opening a business bank account, and more. Here’s everything to know about opening a game development company.

1. Conduct Video Game Market Research

Market research is essential to learning how to start a video game company. It offers insight into developing a business plan, including details on your target market, local market saturation, and trends in products and services.

Some details you’ll learn through market research for your video game company include:

• The most profitable and popular genres are multiplayer online battle arenas (MOBAs), first-person shooters (FPS), sports games, adventure games, and roleplaying games (RPGs).
• Opportunities exist across genres and platforms. The industry rewards creativity, strong visuals and gameplay, and built-in social/community features.

Keys to succeeding in the highly competitive space include:

• Developing innovative, high-quality games with wide appeal
• Creating immersive cross-platform experiences
• Consider creating mobile apps in the form of games and games for handheld devices
• Building a community around your games through streaming, tournaments, social media
• Leveraging free-to-play models, in-game purchases, subscriptions
• Partnering with publishers, platforms, and influencers
• Utilizing data analytics to refine game design and monetization

The key to success in game development is understanding player demand across genres and platforms, crafting quality experiences, and leveraging communities and partners. For developers with unique ideas and the drive to succeed, it is an ideal time to capitalize on this booming, multi-billion-dollar industry.

2. Analyze the Competition

Understanding the competitive landscape is crucial for any new entrant in the video game industry. Performing thorough competitor analysis should be an ongoing process to inform your strategy and positioning.

Some ways to get to know local competitors in game development include:

• For direct competitors, you’ll want to deeply analyze their games across multiple dimensions.
• Examine the genre, platform, and monetization model they are utilizing.
• Study their target audience and demographics.
• Evaluate key features and mechanics, while also looking at strengths and weaknesses in gameplay, graphics, and user experience.
• Review their business model, pricing, and in-app purchases.
• Assess their marketing and distribution strategy, along with their social media and community engagement.
• Consider their branding and messaging, funding and partnerships, company culture, and values.
• Closely analyze competitors’ web presence and digital marketing tactics. Evaluate the website’s functionality, visuals, and content.
• Check SEO optimization and keyword rankings.
• Look at social media followers and engagement. Examine video views and streaming numbers.

Competitor analysis is a key input into strategy, product development, marketing, and operations. It ensures you can craft differentiated, appealing games while converting players into long-term fans.

3. Costs to Start a Video Game Business

Starting a successful video game company requires careful financial planning and budgeting. The initial costs to get up and running can be substantial, and ongoing operating costs pile up quickly. Here is an overview of estimated expenses to factor into your business plan:

Start-Up Costs

• Business entity registration fees – $500-1500 to set up an LLC or corporation
• Legal/accounting fees – $1000-5000 to establish contracts, agreements, accounting systems
• Office space – $2,000-10,000/month to lease office space, depending on location and size
• Computer equipment – $3,000-10,000 for high-end PCs/laptops, servers, accessories
• Game engines and software – $0-$1500/month for licenses of game engines like Unity or Unreal
• Website design and development – $3,000-15,000 for a professional studio website
• Branding and logo design – $500-5,000
• Initial marketing activities – $2,000-10,000 for early promotions and advertising
• Initial hiring – Budget adequate salaries and benefits for early team members, estimate $8,000-12,000/month per employee
• Contingency fund – Set aside at least 10-20% of total budget for unforeseen expenses

Total start-up costs can easily exceed $100,000-500,000 depending on studio size, activities, and location. Fundraising or investors are often needed.

Ongoing Costs

• Rent and utilities – Budget $2,000-15,000 monthly depending on office size
• Salaries – For a small team of 5-10: $50,000-$100,000+ monthly
• Health insurance – $300-800 per employee monthly
• Game engine subscriptions – $0-$5000 monthly depending on team size
• Cloud computing services – $100-$1000 monthly for server capacity
• Software subscriptions – $100-$500 monthly for project management, communication, and design tools from software companies
• Legal and accounting – $2000-$10,000 annually for corporate filings, accounting, contracts
• Marketing and user acquisition – $5000-$500,000+ monthly depending on launch activities
• Customer service/community management – $4000-$15,000 monthly for 1-2 dedicated staff
• Travel and entertainment – $1000-$10,000 monthly for conferences, events, team bonding
• Hardware upgrades – $5000-$15,000 annually
• Ongoing R&D – 10%-50% of revenue reinvested into new games and technology
• Contingency fund – 10%-20% of operating budget for unexpected costs

Annual operating costs often amount to several million dollars for a studio with 5-20 employees. Revenue from game sales and in-app purchases must exceed expenses, requiring financial discipline.

4. Form a Legal Business Entity

When starting a video game business, one of the first legal steps is choosing a business structure. The four main options each have pros and cons to weigh.

Sole Proprietorship

A sole proprietorship is the simplest structure. You operate as an individual with pass-through income and total managerial control. However, you have unlimited personal liability for debts and obligations. This exposes all your assets if sued. For a video game company facing complex regulations and litigation risks, limiting liability is crucial.

Partnership

A general partnership shares control and profit among partners. However, each partner is also personally liable for all partnership liabilities. Disagreements between partners can also impede decision-making. The lack of liability protection makes a general partnership ill-advised.

Limited Liability Company (LLC)

A limited liability company (LLC) offers the best of both worlds – it limits owner liability and allows pass-through taxation like a partnership while providing the limited liability of a corporation. Owners have flexibility in structuring management and profit sharing.

An LLC limits video game developers’ exposure to lawsuits while granting full control over the business. Most startups in the gaming industry opt for an LLC to properly protect the owners’ assets.

Corporation

A corporation shields owners from personal liability but is taxed separately. Income is also taxed twice – at the corporate level and on dividends. There is extensive corporate record keeping and formalities required.

For a small, early-stage video game company, maintaining proper corporate governance can be an unnecessary drain on limited resources. However, large gaming studios often transition to a C corporation structure to prepare for an IPO.

5. Register Your Business For Taxes

One of the key legal steps when forming your video game company is obtaining an Employer Identification Number (EIN) from the IRS. This unique identifier is required to open business bank accounts, apply for licenses and permits, file taxes, and hire employees.

An EIN is essentially your business’s social security number. It allows you to register your company with state and federal agencies. The IRS uses the EIN to track tax obligations like payroll, income, and employment taxes.

Applying for an EIN is free and can be done online via the IRS website . The process only takes a few minutes. You will need to provide basic information about your business entity and ownership structure.

• Navigate to the EIN Assistant and select your business structure.
• Enter the legal name and address of your video game company.
• Select if you will hire employees or file employment tax returns.
• Provide the principal business activity and owner information.
• Review the information and submit the EIN application.

The IRS will process the request immediately and provide your EIN confirmation on screen. Be sure to keep this for your records.

In addition to the federal EIN, most states require registering for sales tax permits and business licenses. Check your state’s website for registration procedures, forms, and minimal costs. Proper legal registrations help legitimize your video game business and keep you compliant as you get up and running.

6. Setup Your Accounting

As a video game startup, meticulous bookkeeping and accounting right from the start is critical. With complex revenue streams from game sales, in-app purchases, subscriptions, and more, you need robust processes to track finances. This ensures taxes are filed properly and the company remains compliant.

Accounting Software

Begin by implementing small business accounting software like QuickBooks . This automates tasks like invoicing, expense tracking, reporting, and reconciliation by integrating with your business bank accounts and credit cards. QuickBooks makes organizing video game company finances easy.

Hire an Accountant

Hiring an accountant provides expertise in filing taxes, preparing financial statements, and advising on accounting practices tailored to the gaming industry. They offer services like:

• Bookkeeping – Recording income and expenses
• Payroll – Calculating wages and tax withholdings
• Cash flow analysis – Monitoring cash coming in and out
• Tax preparation – Filing quarterly estimated payments and annual returns

Expect to invest $1,000-$5,000 annually for an accountant depending on your needs. This upfront expense can prevent costly errors and provide peace of mind at tax time.

Open a Business Bank Account

Maintaining a clear separation of business and personal finances is also critical. Open a dedicated business checking account and credit card solely for company expenses. Never co-mingle personal and company funds.

Apply for a Business Bank Account

Applying for a business credit card is straightforward by providing your EIN, company financial statements, and ownership information. Credit limits are lower than personal cards but sufficient for most expenses.

7. Obtain Licenses and Permits

Before officially launching your video game company, it is crucial to have all required licenses and permits in place. Find federal license information through the U.S. Small Business Administration . The SBA also offers a local search tool for state and city requirements.

On the federal level, you may need to obtain:

• A trademark registration from the US Patent and Trademark Office to protect your studio name, logo, and game titles. This grants exclusive nationwide usage rights and the ability to sue infringers. The process takes 6-12 months and requires submitting an application and legal fees of around $250-$500 per mark.
• Copyright registration from the US Copyright Office to protect unique game characters, stories, graphics, and code. This is obtained by applying and $40 fee along with samples of original work. Registration must occur before any infringement to enable damage recovery in lawsuits.

At the state and local level, typical licenses and permits include:

• A business license that legitimizes your company and allows you to collect sales tax. Applications require a copy of your business formation documents and fees ranging from $50-$500.
• Zoning permits if renovating or leasing office space, costing $75-$500 depending on location. These verify the property is properly zoned and that renovations meet the code.
• Local construction permits for any office fit-out and renovations beyond basic cosmetics. These ensure building safety and proper inspections.
• Fire department permits related to office fire systems, occupancy limits, extinguishers, etc. if mandated for your studio size and layout.
• Health department permits related to employee kitchens, serving food, and other health codes that apply to your office.

Depending on your studio activities, additional documentation may be required such as liquor licenses for game launch events, special venue permits for tournaments, and licenses for warehouse spaces. An attorney can identify all pertinent federal, state, and city-level licenses your particular video game company requires.

The licensing process takes time, so build this into your studio launch plan. Provide detailed business information like legal formation documents, ownership details, office addresses, number of employees, and planned activities. Organizing this information ahead of time expedites obtaining permits.

8. Get Business Insurance

Operating a video game startup without adequate insurance opens the business to major financial risks. The right policies can protect against potential catastrophes that could otherwise bankrupt your company.

Consider a few scenarios: A fire destroys your office and equipment without property insurance to cover damages and rebuilding costs, which leads to permanent closure. Or a visitor slips and falls at your office, sustaining serious injuries.

Without liability insurance, you pay enormous lawsuit settlements out of pocket. Your company could also face a data breach exposing customer information. Lacking cyber insurance means bearing the costs of legal action and regulatory fines yourself.

The right insurance protects against disasters that threaten the company’s survival. Common startup policies include:

• General liability insurance covers legal judgments from bodily injury, property damage, slander, and wrongful termination lawsuits.
• Property insurance reimburses costs to repair or rebuild office space and replace equipment after incidents like fires, floods, or theft.
• Business interruption insurance provides income to continue operations if events force your office to temporarily close.
• Cyber insurance protects against data breaches, network damage, and cyber crimes.
• Errors and omissions insurance covers financial losses from mistakes in services provided.
• Directors’ and officers’ insurance protects individual board members from personal liability in lawsuits.

The process of getting insured involves first determining needed coverage types and limits. Then get quotes from multiple business insurers. Next, select a carrier and policy that meets your needs and budget. Complete applications providing details on your video game company. Finally, pay premiums to activate coverage.

9. Create an Office Space

Having a professional office space lends legitimacy and provides room to grow for a video game startup. It enables collaboration during game development, hosting publishers and partners, and accommodating additional hires. Weigh several options to meet launch needs within budget.

Home Office

A home office cuts costs and offers convenience early on. Dedicate space exclusively for work to avoid distractions. However, limited space can hamper team meetings and expansions. You also sacrifice professionalism meeting clients at home. Expect to invest in a dedicated broadband connection and furnishings.

Coworking Office

Coworking spaces like WeWork provide an instant professional environment with amenities like conference rooms, WiFi, kitchens, and printing. The open layout enables collaboration and networking with other tenants. Monthly costs typically start around $300 per desk. While flexible, Coworking lacks privacy for confidential calls and IP security.

Commercial Office

A traditional office lease provides the most control yet requires upfront capital. Expect to budget $10-$30 per square foot in monthly rent plus taxes, utilities, and other fees. Hire contractors for any desired renovation and furniture purchases.

Signing personally guarantees the lease, so consider forming an entity first. While more expensive initially, a long-term lease enables customization and expansion as your studio scales.

10. Source Your Equipment

Launching a video game studio requires obtaining specialized equipment like high-end computers, servers, software, and furniture. Explore these options to secure needed gear affordably.

Buying new ensures the latest technology and warranty protections. Desktops and laptops fitted for game development run $1,000-$5,000 from vendors like Dell , HP , and Apple depending on specs. Ergonomic desks and chairs cost several hundred per station. Shop smart by waiting for sales events or buying certified refurbished items when available.

Purchasing used equipment through sites like Craigslist , Facebook Marketplace , and eBay can yield major savings, with items discounted by over 50% in some cases. When buying remotely, focus on reputable sellers with detailed listings, maintenance records, and at least a 30-day warranty.

Renting workspaces already outfitted with furniture and computers can also be cost-effective starting. Coworking offices offer move-in ready private offices, potentially saving tens of thousands in upfront investments. However, monthly rental fees still apply for the duration needed.

Leasing business equipment through companies like Dell Financial Services enables paying over 12-48 months. This preserves capital for other startup needs. Lease-to-own plans give the flexibility to upgrade technology before the term ends. Just be sure to negotiate fair monthly rates and avoid predatory terms.

11. Establish Your Brand Assets

Crafting a strong brand identity is crucial for standing out in the competitive gaming industry. Ensure your studio makes a memorable first impression by proactively developing key branding assets.

Get a Business Phone Number

Begin by securing a professional business phone number through a service like RingCentral . Toll-free and local numbers with custom greetings and extensions project legitimacy when prospecting publishers, booking media interviews, and communicating with partners.

Design a Logo

Next, create a logo that encapsulates your studio’s vision. Consider an abstract mark, letterform, or illustrated character logo. Tools like Looka make it easy to develop and iterate ideas. Repeating your logo across websites, game art, merchandise, and promo items trains customers to recognize your brand.

Print Business Cards

To network at conferences and events, business cards from Vistaprint enable sharing contacts quickly. Your founders and developers should also have cards on hand when meeting potential investors and partners.

Don’t forget signage for trade show booths, office wayfinding, and branding exterior entryways. Vistaprint offers fast online ordering of banners, acrylic signs, window graphics, and displays with your logo.

Buy a Domain Name

Securing a domain name is equally important. Aim for yourstudio.com or .game to reinforce branding and trust. Use Namecheap to check availability and register domains affordably.

Design a Website

Building a modern website on platforms like Wix provides a hub for your brand. Showcase games, team bios, job listings, investor info, and contact forms professionally. Or you can hire seasoned developers through Fiverr to handle site construction, saving precious internal resources.

12. Join Associations and Groups

Joining relevant local organizations and online communities can provide invaluable connections and insights for a video game startup. Surround yourself with fellow developers, designers, and gaming entrepreneurs.

Local Associations

Seek out local developer associations like the International Game Developers Association with chapters nationwide. Attend meetups to exchange tips on game engines, monetization, work culture, and more. Conferences like IndieCade enable networking with industry veterans.

Local Meetups

Utilize sites like Meetup to find regular gaming mixers and demo days in your city. These facilitate collaborations, playtesting sessions, and recruiting opportunities. Interacting in person often leads to long-term partnerships.

Facebook Groups

For broader connections, join developer forums and communities on Facebook. The Video Games , Video Game Business Owners – Buy / Sell / Trade , and Video Game Collecting & Discussion have thousands of global members. Share work samples and puzzles to solve. Learn from countless peers simultaneously at any hour.

13. How to Market a Video Game Business

Marketing is indispensable for building awareness and driving sales of your games. Leverage both digital campaigns and real-world promotion to maximize reach across player demographics.

Personal Networking

Start by engaging your personal and professional networks. Existing relationships often convert to early customers for video game companies. Offer exclusive early access or limited edition swag to fans who pre-order or recommend to friends. Word-of-mouth is still a powerful driver.

Digital Marketing

For digital marketing:

• Run Google and Facebook ads targeted using interests like specific game genres, competing titles, and gaming influencers. Geo-target cities with vibrant gaming communities.
• Start a YouTube channel posting trailers, playthroughs, development vlogs, and teasers. Collaborate with influencers.
• Write developer blog posts with behind-the-scenes details to build hype and SEO.
• Promote on Reddit, Discord, and forums related to your game type. Engage authentically with these communities.
• Leverage affiliate marketing partnerships with streamers, sites, and influencers.
• Retarget website visitors with ads and special offers via platforms like Facebook Pixel.
• Optimize for keywords gamers are searching like your genre and platform.

Traditional Marketing

For traditional marketing:

• Attend local gaming conferences and tournaments to demo games and network.
• Distribute flyers and brochures at comic book shops, gaming cafes, and electronics stores.
• Take out ads in gaming magazines and websites tied to your target genre.
• Seek reviews and press via personalized outreach to journalists.
• Utilize billboards, radio spots, and TV ads in specific markets where your game has traction.
• Sponsor esports tournaments and college gaming events to get products used competitively.

Amplify word-of-mouth and digital campaigns through targeted real-world promotion. Analyze data to refine strategies and maximize ROI across channels. Consistent marketing is table stakes for indie studios hoping to break through the noise. Leverage the uniqueness of your games across both digital and traditional avenues to build a fanbase.

14. Focus on the Customer

Providing exemplary customer service must be a priority, even for indie game developers. How you support players builds loyalty that fuels referrals and reviews.

Some ways to improve customer focus in your own video game company include:

• Be available to respond to questions and feedback emails swiftly. A quick turnaround on tech support tickets fixes issues before frustration sets in.
• Monitor forums and social channels to address concerns transparently. Publicly thank users for constructive critiques that improve games.
• Make yourself accessible through Discord chats and Reddit AMAs. Let players feel heard by the studio leadership directly.
• When mistakes happen, offer sincere apologies and make things right. If a release is buggy, gift players free in-game items or currency to rebuild goodwill.
• Surprise inactive users with comeback offers if they churn. Welcome them back warmly if they return.
• Consider refunding dissatisfied purchasers, even if not obligated. Losing some revenue prevents greater reputation damage.
• Thank players who leave positive reviews or endorsements. Spotlight their content across your social channels.
• Service with empathy, patience, and understanding. Gamers are real people, not just metrics.

By providing support as dedicated as the development team, you earn trust. Players become advocates who drive ongoing sales through referrals. They quickly forgive missteps because the relationship is valued. Make customer service not just a cost center, but a profit center, through earned loyalty.

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Your Indie Game Studio business plan (and how to get one)

• by Zachary Strebeck

So you want to start an indie game studio ?

First thing’s first:

You need a business plan.

In this post, you’ll find a comprehensive indie game studio business plan to use in starting your own game company. I’ll give you a few options, as well as some important resources to get you going with your new business.

Let’s get started.

First – get all of my FREE video game law eBooks by signing up below!

Why do you need a business plan.

You need to realize one thing:

Creating indie games is an extremely tough business.

Most games will fail.

That’s right. Read it again.

No matter how good your game is, chances are that your game will not make back whatever time or money you put into it.

And that’s okay,  if  you’ve planned for it.

Check out this talk by Rami Ismail of Vlambeer for some serious truth about the indie games business:

A business plan will help you to figure out just how you’re going to deal with the realities of the indie games business. For example:

• You’ll explore how much your business will cost to run, so you know how much you need to make back
• You’ll delve into the possible revenue streams and feasibility of them
• You can get some plans in writing for researching the target market and how you can sell to them (something most indie devs don’t bother doing)
• Other issues are addressed, like what makes your game unique (be honest with yourself), whether you need some funding or investors, whether you’ll be seeking a publisher, and more!

The business plan also serves as a template that you can always refer back to when questions come up during development.

It should also be a living document that is updated throughout development as the situation changes.

Indie game studios – why they are unique and why they’re not

Indie games are different.

They’re different than other businesses:

• Very different from the local mom and pop store
• Quite different than your average tech startup
• Extremely different than a big-budget AAA game

But just because there are many differences in the realities of the indie game business, there are a ton of things that are exactly the same.

In fact, most businesses have many things in common.

• Most businesses fail.
• Most businesses struggle to have working startup capital.
• Most businesses can benefit from some market research up front.

As with most creative businesses, figuring out whether the audience wants your game or not is extremely difficult for indie game developers. It’s a hit-driven business, which means that there’s usually some kind of creative “spark” that draws audiences in.

However, if you understand market research, marketing, and public relations, you can better yourself for appealing to a certain audience and selling directly to them.

Startups usually thrive by finding a problem that people have, and providing them a way to solve it (hopefully in a way that they pay for). Or they see a hole in an industry that is not being properly served, and fill that hole.

Others try to outdo a competitor, making a better product. But that’s a much more difficult task.

What can indie studios learn from this?

Looking at the market that’s out there and seeing what actual players are looking for is a great place to start. While many developers start with the idea, this is putting the cart before the horse.

Creating a product and hoping that there’s an audience for it is the opposite of how most successful businesses work .

There’s a very good reason for this:

It doesn’t make much sense.

You’re putting a ton of time, money, and effort into creating something that you don’t have any clue if it will be even moderately successful.

On the other hand, if you know the industry, know what players are looking for that they’re not getting, and can provide that experience to them (in a form that has engaging graphics, fun gameplay, and other great aspects), I believe that you’re enhancing your chances of finding an audience.

All of this can be addressed in a business plan, as we’ll see below.

Keep reading!

Different models for business plans

There are any number of business plan models out there, so which one you choose is entirely up to you.

The main ones are:

The Lean Canvas

This is a one-page business plan based on the book The Lean Startup. You can  download a template here . Honestly, it’s my preferred method of business planning, because it gets right to the heart of the important stuff:

• What problem are you solving?
• Who are you potential customers?
• What is your unique selling proposition?

Rather than messing around with Executive Summaries and other stuff, you have the ability to pump out a plan in 20 minutes and adjust accordingly as you research, develop, and market your game.

A traditional Business Plan

For a more traditional plan, you generally have 8 sections:

• Executive Summary (an overview/summary of the business plan)
• Description of the Business (Information about your business and why you are unique)
• Market Analysis (who are your potential customers?)
• Organization and Management (the legal structure and who’s in charge of your company)
• Your Product (describe your product, including customer benefits)
• Marketing (how will you market and sell your product?)
• Funding (do you need to raise any funds or will you fund the business yourself?)
• Financials (project your business’s financial future)

It’s much more formal and in-depth than the Lean Canvas method, which makes it a little more difficult to iterate on. The Small Business Administration has some templates and examples on their site that should help you out.

Check it out here.

Working with partners – what are your expectations?

There’s one more important step:

Whenever I have clients who are working in a partnership or multi-owner business, I like to have them fill out a short questionnaire.

Meaning, they each have to fill it out without discussing the answers with each other first. This helps me ensure I’m getting the honest answers.

If they do match – that’s great!

If they don’t match , it means that there could be some serious issues and expectations that need to be aligned before moving forward.

What are the questions? Something close to the following:

• What is the proposed business model? How do you plan to actually  make money with the business?
• Is fundraising going to be necessary? Is there a plan in place for that fundraising?
• What day-to-day responsibilities will  you  have in the business? What time commitment will that involve?
• What day-to-day responsibilities will  your partners  have in the business? What time commitment will that involve?
• Is there any plan to add other people to the business? What are the conditions for that happening?
• What’s your exit strategy?

Those are the most important questions as far as overall strategy goes.

Some of these things (#1 in particular) will be dealt with in writing up the business plan, but it’s still important to make sure you’re all on the same page.

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What are some resources you can use to learn about starting running a business.

Still feel like you’re clueless?

Luckily for you, there are a bunch of great resources out there to help new businesses.

Here are some of my favorites (some of which I mentioned before):

• The Small Business Administration website
• Your local government’s business site – many local governments have checklists and walkthroughs about the specific steps to take in starting a business in that particular place.
• Running Lean  (you can start with  The Lean Startup , but I feel that Running Lean is more “actionable”)
• Rachel Presser’s  The Definitive Guide to Taxes for Indie Developers
• My podcast,  The Legal Moves Podcast , which has a ton of interviews with indie devs who have been where you are now

Hopefully the advice here is helpful for you!

If you have any questions about setting up your indie game company or anything else games-business related,  feel free to contact me . You can also check out my Indie Game Jumpstart Bundle here , for everything you need to start your studio in one package.

Zachary Strebeck

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How To Write a Video Game Studio Business Plan: Checklist

By alex ryzhkov, resources on independent video game studio.

• Financial Model
• Business Plan
• Value Proposition
• One-Page Business Plan
• SWOT Analysis
• Business Model
• Marketing Plan
• Bundle Business Plan & Fin Model

Welcome to our blog post on how to write a business plan for an independent video game studio in 9 steps. The video game industry has seen exponential growth over the past decade, with global revenues reaching $159.3 billion in 2020 and projected to exceed $200 billion by 2023. With the right approach, strategy, and planning, you can position your studio for success in this thriving and ever-evolving industry.

1. Conduct Market Research : Understanding the market landscape, trends, and consumer preferences is crucial for the success of your video game studio. Identify potential gaps and opportunities that align with your vision.

2. Identify Target Audience : Determine who your ideal gamers are and analyze their demographics, preferences, and interests. This will help you focus your efforts and tailor your game development and marketing strategies accordingly.

3. Define Unique Selling Proposition : Differentiate your studio by identifying what sets it apart from other game developers. Whether it's innovative gameplay mechanics, compelling storytelling, or cutting-edge graphics, highlight your unique selling points to captivate gamers.

4. Analyze Competitors : Study the strategies and offerings of your competitors to identify their strengths and weaknesses. This analysis will help you position your studio effectively and develop strategies to stand out in the market.

5. Determine Financial Requirements : Calculate the financial resources you'll need to start and sustain your video game studio. Consider costs such as game development, marketing, staffing, equipment, and ongoing operational expenses.

6. Develop a Business Model : Outline your revenue streams, cost structure, and pricing strategies. Determine if you'll generate revenue through game sales, in-game purchases, subscription models, or other monetization methods.

7. Create a Marketing Strategy : Develop a comprehensive marketing plan to promote your games and build brand awareness. Use a mix of digital marketing, social media engagement, influencer partnerships, and community events to reach your target audience.

8. Outline Organizational Structure : Determine the roles and responsibilities within your studio. Consider hiring talented developers, artists, designers, and marketers who share your vision and can contribute to the growth of your studio.

9. Define Short-term and Long-term Goals : Set achievable short-term milestones and long-term objectives. Whether it's releasing a successful debut game, expanding to new platforms, or partnering with major publishers, clearly define your goals and establish a roadmap for success.

By following these 9 key steps and taking a strategic and proactive approach, you'll be well on your way to establishing a successful independent video game studio. Stay tuned for our upcoming blog posts, where we'll dive deeper into each step and provide valuable insights to help you navigate the exciting world of video game development.

Conduct Market Research

Before diving into the world of independent video game development, it is crucial to conduct thorough market research to gain valuable insights and inform your business plan. This step will help you understand the current state of the gaming industry, identify trends, and assess the potential demand for your video games.

Market research involves analyzing various aspects, including the target audience, competitors, and market trends. By understanding your audience, you can tailor your games to meet their preferences and needs, increasing the likelihood of success.

To conduct effective market research, consider the following steps:

• Identify the demographics and psychographics of your target audience. This will help you create games that resonate with their interests, preferences, and motivations.
• Explore the current gaming landscape and trends. Stay updated on the latest technologies, platforms, and game genres that are popular among gamers.
• Analyze the preferences and behaviors of your competitors' audience. This will provide insights into their strengths, weaknesses, and potential opportunities for your own games.

Tips for conducting market research:

• Utilize online surveys and interviews to gather information directly from gamers. This can help you validate your ideas and gain valuable feedback.
• Join gaming communities, forums, and social media groups to engage with your potential target audience. This will allow you to understand their perspectives and preferences.
• Keep an eye on industry reports, market studies, and gaming conventions to stay informed about the latest trends and developments in the gaming industry.

By conducting comprehensive market research, you will gain a solid understanding of your target audience and the competitive landscape, enabling you to make informed decisions as you develop your business plan for your independent video game studio.

Identify Target Audience

One of the key steps in writing a business plan for your independent video game studio is identifying your target audience. Understanding who your ideal customers are will help you tailor your game design, marketing efforts, and overall business strategy to effectively reach and engage them.

1. Research the Gaming Market: Begin by researching the gaming market to gain insights into the demographics, preferences, and behavior of potential gamers. Look for trends, popular genres, and successful games that align with your studio's vision and offerings.

2. Define the Gamer Profiles: Create detailed profiles of your target audience segments based on factors such as age, gender, gaming platform preference, game genre preference, and interests. This will help you understand their motivations, pain points, and preferences, enabling you to develop games that cater specifically to their needs.

3. Conduct Surveys and Interviews: Engage with gamers through surveys and interviews to gather firsthand feedback and insights. This will provide you with valuable information about their expectations, preferences, and desires in video games. Use this data to refine your target audience profiles and better understand their needs.

4. Analyze Competitors: Study the audience demographics and preferences of your competitors to gain additional insights. Look for gaps in the market that your studio can address by offering unique and compelling game experiences that resonate with your target audience.

• Consider creating player personas to humanize and visualize your target audience.
• Stay up-to-date with gaming industry news and trends to anticipate changes in the market and adjust your target audience strategy accordingly.
• Continuously monitor and analyze user data and feedback to adapt and optimize your target audience strategy as your studio grows.

By identifying your target audience, you can tailor your game development efforts, marketing campaigns, and overall business strategy to meet their needs and expectations. This will increase your studio's chances of delivering successful, immersive gaming experiences that captivate your desired customer base.

Define Unique Selling Proposition

Defining a unique selling proposition (USP) is crucial for your independent video game studio to stand out in a highly competitive market. Your USP is what sets you apart from other game studios and helps you attract and retain customers.

• Evaluate your strengths and expertise: Begin by identifying what makes your studio unique. Consider your team's skills, experience, and any innovative technologies or creative approaches that you bring to the table.
• Understand your target audience: Analyze the preferences, needs, and desires of the gamers you want to reach. Tailor your USP to align with what they value most in video game experiences.
• Highlight your distinct features: Identify the key features, mechanics, storytelling techniques, or art styles that make your games stand out. Emphasize these elements as part of your USP.
• Showcase your value: Demonstrate how your games enhance the gaming experience compared to competitors. Whether it's providing unique challenges, fostering community interaction, or delivering unparalleled immersion, make it clear why gamers should choose your studio.

Extra Tips:

• Stay informed about the latest trends in the video game industry to identify opportunities for innovation and differentiation.
• Consider conducting focus groups or surveys to gather feedback from potential customers and use that information to fine-tune your USP.
• Regularly reassess and refine your USP as your studio evolves and responds to changes in the market.

By defining a clear USP, your independent video game studio can effectively communicate its unique value proposition to gamers and industry professionals, setting the foundation for success in a highly competitive market.

Analyze Competitors

Analyzing your competitors is crucial in the video game industry, as it helps you understand the current market landscape and identify opportunities for differentiation. By examining what your competitors offer, you can gain valuable insights into their strengths and weaknesses , allowing you to strategically position your independent video game studio.

Start by compiling a list of your major competitors, including both established studios and emerging ones. Research their games, platforms, target audience, and pricing strategies. Look at their reviews and ratings to assess the quality of their products and identify any gaps in the market that you can capitalize on.

Identify their unique selling propositions (USPs) and compare them to your own. This will help you determine how your studio's games stand out and what makes them compelling to players.

Here are some tips to consider when analyzing competitors:

• Study their marketing strategies and distribution channels to understand how they reach their target audience.
• Pay attention to their community engagement efforts, such as social media presence and interaction with players.
• Consider attending gaming conventions and industry events to learn more about your competitors and network with other professionals.
• Look for opportunities to collaborate or form partnerships with your competitors to leverage each other's strengths and expand your reach.

Determine Financial Requirements

One of the most crucial steps in starting an independent video game studio is determining the financial requirements for your venture. This involves assessing your anticipated expenses and estimating your potential revenue streams.

To determine your financial requirements, start by creating a detailed budget that outlines all the costs involved in launching and operating your video game studio. These costs may include:

• Equipment and software expenses
• Office space and utilities
• Salaries and benefits for employees
• Marketing and advertising expenses
• Legal and accounting fees
• Research and development costs
• Production and distribution expenses

Once you have a clear understanding of your expenses, consider potential sources of funding. Some options may include:

• Self-funding: Using personal savings or assets to finance your startup costs.
• Bootstrapping: Operating with minimal external funding and finding creative ways to reduce costs.
• Investors: Seeking investment from angel investors, venture capitalists, or strategic partners.
• Loans: Applying for business loans from banks or other financial institutions.
• Crowdfunding: Running a crowdfunding campaign to raise funds from a community of supporters.
• Be realistic: When estimating your expenses and potential revenue, be conservative to avoid potential financial pitfalls.
• Consider alternative funding options: Explore grants, sponsorships, or partnerships with gaming industry organizations.
• Seek professional advice: Consult with an accountant or financial advisor to ensure your financial projections are accurate and reliable.

By determining your financial requirements early on, you can create a solid foundation for your independent video game studio and effectively manage your resources as you work towards your goals.

Develop A Business Model

Developing a business model is a critical step in establishing your independent video game studio. It serves as a blueprint for how your company will create, deliver, and capture value. Here are the key elements to consider when developing your business model:

• Product Offering: Clearly define the types of games you will develop, specifying the genres, platforms, and gameplay features. Consider whether you will focus on creating original intellectual property or leverage existing licenses and franchises.
• Revenue Streams: Identify the different ways your studio will generate revenue. This may include game sales, in-app purchases, subscription models, advertising, or partnerships with other companies.
• Cost Structure: Determine the costs associated with developing and launching your games, such as personnel, equipment, software licenses, marketing, and distribution expenses.
• Value Proposition: Clearly articulate the unique value your video games will offer to the market. What sets them apart from competitors? How will they captivate and engage gamers?
• Customer Segments: Identify the specific groups of gamers that your studio will target. Consider their demographics, preferences, and behaviors to tailor your games and marketing strategies accordingly.
• Key Partnerships: Assess potential collaborations with talented developers, industry professionals, and technology providers. These partnerships can enhance your studio's capabilities and help bring your games to life.
• Channels: Determine the most effective distribution channels to reach your target audience. Will you release your games through app stores, digital platforms, or physical retail? Consider online marketing, social media, and community engagement to promote your titles.
• Keep your business model flexible and adaptable to changes in the gaming industry.
• Regularly reassess your revenue streams and adjust accordingly based on market trends.
• Consider conducting market tests or focus groups to gather feedback and validate your value proposition.
• Stay informed about emerging technologies and gaming trends to stay ahead of the competition.
• Seek advice from industry experts or mentors who have experience in the video game industry.

Create A Marketing Strategy

A well-defined marketing strategy is essential for the success of your independent video game studio. It not only helps you reach your target audience but also effectively communicates your unique selling proposition. Here are some important steps to consider when creating your marketing strategy:

• Identify your target audience: Understanding your target audience is crucial in developing marketing campaigns that resonate with them. Conduct market research and gather data to determine the demographics, preferences, and behavior of your target customers.
• Define your unique selling proposition (USP): Your USP sets you apart from your competitors and highlights the unique value your video games offer. Clearly articulate the key features, gameplay elements, or storytelling approach that make your games stand out.
• Analyze your competitors: Study your competition to identify their marketing tactics, target audience, and positioning strategies. This analysis will help you understand their strengths, weaknesses, and potential opportunities for differentiation.
• Develop a comprehensive marketing plan: Outline the specific marketing activities you will undertake to promote your games. This includes online and offline marketing channels, such as social media, influencer collaborations, digital advertising, public relations, and events.
• Utilize digital marketing techniques: Embrace the power of digital marketing to reach a wider audience and build brand awareness. Develop a strong online presence through engaging website content, search engine optimization (SEO), and targeted online advertising campaigns.
• Explore partnerships and collaborations: Partnering with influencers, streamers, and media outlets can help amplify your reach and generate buzz around your games. Collaborate with other industry professionals, such as artists or musicians, to enhance the gaming experience and attract new audiences.
• Regularly track and measure the effectiveness of your marketing campaigns to identify areas of improvement.
• Cultivate a strong social media presence to engage with your community, foster brand loyalty, and gather feedback.
• Consider offering demos or limited-time trials to create anticipation and generate interest in your games.
• Invest in creating high-quality marketing materials, including trailers, screenshots, and promotional videos to showcase your games' unique features.

Outline Organizational Structure

When it comes to running a successful independent video game studio, having a well-defined organizational structure is key. This ensures that everyone in your team has a clear understanding of their roles and responsibilities, fostering effective communication and collaboration. Here's how you can outline your organizational structure:

• Start by determining the key positions that are crucial for your studio's operations. This may include roles such as game designers, programmers, artists, marketing professionals, and project managers.
• For each position, clearly define the job description, specifying the required skills and experience. This will help in recruiting the right individuals who possess the necessary expertise to contribute to your studio's success.
• Consider the hierarchy within your organization. Identify the reporting lines and define the chain of command, ensuring that there is a clear structure for decision-making and accountability.
• Outline the communication channels and workflows within your team. This includes establishing regular update meetings, setting up project management tools, and implementing efficient communication platforms to facilitate seamless collaboration.
• Think about the scalability of your organizational structure. As your studio grows, it's important to plan ahead and anticipate future expansion. Determine how new positions can be created, and how existing roles can be adapted to accommodate a larger team.
• Encourage regular feedback and open communication between team members. This promotes a positive working environment and helps identify areas of improvement.
• Consider establishing cross-functional teams to enhance collaboration and encourage innovation.
• Document your organizational structure in a visual format, such as an organizational chart, to provide a clear representation of the roles and relationships within your studio.

By outlining your organizational structure, you will provide a solid foundation for the successful operation and growth of your independent video game studio. This step ensures that everyone in your team understands their roles, promotes effective communication, and sets the stage for collaborative and cohesive game development.

Define Short-Term and Long-Term Goals

Defining both short-term and long-term goals is essential for the success of your independent video game studio. Short-term goals are the milestones you aim to achieve in the near future, typically within the next one to three years. Long-term goals, on the other hand, are the broader objectives that guide the overall direction and growth of your studio over the next five to ten years.

Short-term goals should be specific, measurable, achievable, relevant, and time-bound (SMART). These goals help you stay focused and motivated as you work towards building a solid foundation for your studio. Some examples of short-term goals for your video game studio might include:

• Launching your debut video game title within the next 12 months
• Building a loyal community of gamers through active engagement on social media platforms
• Establishing strategic partnerships with industry professionals and talented developers
• Generating a sustainable revenue stream through game sales and additional monetization strategies

Tips for setting short-term goals:

• Break down your larger objectives into smaller, actionable steps to facilitate progress.
• Regularly review and update your short-term goals to adapt to changes in the industry or market conditions.
• Ensure that your short-term goals align with your broader long-term vision for the studio.

Long-term goals provide a roadmap for the future growth and sustainability of your video game studio. These goals should be ambitious yet achievable, providing a clear direction for your studio's overall development. Some examples of long-term goals for your video game studio might include:

• Becoming a recognized industry leader known for creating groundbreaking and critically acclaimed video games
• Expanding your studio's team and facilities to accommodate the development of larger and more ambitious projects
• Establishing a strong brand presence both domestically and internationally, attracting a global audience of gamers
• Becoming financially self-sustainable through a combination of game sales, partnerships, and additional revenue streams

Tips for setting long-term goals:

• Ensure that your long-term goals are aligned with the evolving trends and demands of the gaming industry.
• Regularly assess and reassess your long-term goals to adapt to changes in the market landscape.
• Break down your long-term goals into smaller milestones to track your progress and maintain motivation.

By defining both short-term and long-term goals for your independent video game studio, you provide yourself with a roadmap that ensures you are working towards a clear vision and direction. Remember to regularly review and update your goals to reflect changes in the industry and to stay on track towards achieving your ultimate vision for your studio.

In conclusion, writing a business plan for an independent video game studio involves several crucial steps that are essential for success. By conducting thorough market research, defining a target audience, and analyzing competitors, you can gain valuable insights into the industry and position your studio effectively.

Identifying a unique selling proposition and developing a strong business model will help differentiate your studio from competitors and attract investors. Additionally, creating a comprehensive marketing strategy will ensure effective promotion and visibility for your games.

Outlining the organizational structure and defining short-term and long-term goals will provide a roadmap for growth and ensure efficient operations within your studio. Lastly, determining the financial requirements and setting realistic financial goals are crucial for securing funding and sustaining your business.

By following these 9 steps and incorporating them into your business plan, you will be well-prepared to navigate the competitive landscape of the video game industry and establish a successful independent video game studio.

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Start a Video Game Company

Unleashing Your Inner Creator: Building Immersive Worlds in a Video Game Company

VIDEO GAME COMPANY

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How to Start a Video Game Company

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Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on March 4, 2022 Updated on June 5, 2024

Investment range

$6,550 - $12,100

Revenue potential

$60,000 - $290,000 p.a.

Time to build

3 – 6 months

Profit potential

$53,000 - $88,000 p.a.

Industry trend

The US is home to millions of gamers, blasting away everyday on top titles like Assassin’s Creed, Grand Theft Auto, Minecraft and Animal Crossing. Video games are booming and will soon be a $300 billion global industry. If you love gaming and have programming experience, you could start your own video game company, give gamers endless hours of fun and grab a sliver of that massive market. Who knows, you might even grow into the next Activision Blizzard or Epic Games. 

Getting there will take a lot of hard work and a good deal of business knowledge. This step-by-step guide can’t help you with the first part, but it does provide all the insight and information you’ll need to develop and launch your own successful video game company.

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Step 1: Decide if the Business Is Right for You

Pros and cons.

Starting a video game company has pros and cons to consider before deciding if it’s right for you. 

• Flexibility – Work from home, when you want
• Good Money – Video games have massive global appeal
• Fun! – Create inventive and enjoyable games
• Experience Required – Online courses are not enough to start a company
• Saturated  Market – Market is full of video game firms

Video game industry trends

Industry size and growth.

• Industry size and past growth – The US video game industry is worth $95.4 billion and has seen strong 13% annual growth for five years.(( https://www.ibisworld.com/industry-statistics/market-size/video-games-united-states/ )) 
• Growth forecast – The global video game market is projected to expand an impressive 80% by 2027, reaching $315 billion.(( https://www.mordorintelligence.com/industry-reports/global-gaming-market )) 
• Number of businesses – In 2022, more than 55,000 video game companies are operating in the US.(( https://www.ibisworld.com/industry-statistics/number-of-businesses/video-games-united-states/ ))
• Number of people employed – In 2022, the video games industry employed 298,077 people in the US.(( https://www.ibisworld.com/industry-statistics/employment/video-games-united-states/ ))

Trends and challenges

Trends in the video games industry include:

• Cloud gaming and streaming are growing fast, and most games today are downloaded or accessed online rather than distributed in physical form . About half of games are “PC games” instead of “console games”, but even Nintendo Switch games are downloaded rather than physically purchased. 
• Steam, a platform to play games online, is another new and popular option for gamers who are moving away from console gaming.
• Mobile gaming has exploded in recent years, accounting for about half of all gaming revenue in 2020. 

Challenges in the video games industry include:

• Fears about the impact violent games have on children persist. There have been many studies on the topic with mixed results, and other studies have shown that gaming leads to isolation and poor academic performance. 
• With over a million games already in existence, coming up with brilliant new game ideas gets more difficult every day. 

Demand hotspots

• Most popular states – The most popular states for game developers are Oregon, Washington, and Massachusetts.(( https://www.zippia.com/game-developer-jobs/best-states/#texas ))
• Least popular states – The least popular states for game developers are Oklahoma, Hawaii, and Iowa.

What kind of people work in Video Games?

• Gender – 24% of video game developers are female, while 76% are male.(( https://www.zippia.com/video-game-developer-jobs/demographics/ ))
• Average level of education – The average video game developer has a bachelor’s degree.
• Average age – The average video game developer in the US is 43.2 years old.

How much does it cost to start a video game business?

Startup costs for a video game company range from $6,500 to about $12,000. Costs include a high-powered computer and game development software.

You can earn a bachelor’s degree in game development online from schools like Southern New Hampshire University . Of course, that will take several years and cost thousands of dollars. You can also take inexpensive courses on sites like Udemy and Coursera. Most courses cost less than $50 and often are self study. You could probably take several courses for a few hundred dollars and finish in less than six months. 

If you want to protect the intellectual property of your games by getting a patent, each patent will cost you about $25,000.

How much can you earn from a video game business?

The average price of a video game is about $50, and the profit margin on actual physically purchased games is about 40%. If you create games to be digitally downloaded, your profit margin will be 90%.

You might, however, want to consider starting with an online game costing about $4, with a profit margin of 90%. Your only costs to develop the game are your time after the cost of the software that you purchase. 

In your first year or two, you could work from home and have 40 players a day, bringing in nearly $60,000 in annual revenue. This would mean almost $53,000 in profit, assuming that 90% margin. As your brand gains recognition, you could build more games and have 200 players a day. At this stage, you’d probably rent out an office and hire staff, including game designers, reducing your profit margin to 30%. Still, with annual revenue of more than $290,000, you’d make a tidy profit of $88,000.

What barriers to entry are there?

There are a few barriers to entry for a video game company. Your biggest challenges will be:

• Extensive skills are required to make video games
• Finding the best game development software

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Step 2: hone your idea.

Now that you know what’s involved in starting a video game company, it’s a good idea to hone your concept in preparation to enter a competitive market.

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

Research video game companies online to examine their products, price points, and customer reviews, as well as what sells best. You’re looking for a market gap to fill. For instance, maybe the market is missing a video game company that targets women.

You might consider targeting a niche market by specializing in a certain aspect of your industry, such as sports video games, mobile games, or puzzle games.

This could jumpstart your word-of-mouth marketing and attract clients right away.

What? Determine what kind of video games you’ll develop

You may want to start by offering a free game, or at least a game with a free trial. You also need to decide the format of the games you want to develop – PC, mobile, or downloadable to a console. You also need to decide what genre of games to develop – sports, action, zombie games. The options are endless.

How much should you charge for video games?

The average price of an online video game is $3 to $4. You should aim for a profit margin of about 90%.

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Your target market will be gamers of all ages. You can find younger game players on TikTok and Instagram, and older gamers on Facebook. But the best way to reach out to gamers is probably on online discussion platforms like Steam’s discussion board.

Where? Choose your business premises

In the early stages, you may want to run your business from home to keep costs low. But as your business grows, you’ll likely need to hire workers for various roles and may need to rent out an office. Find commercial space to rent in your area on sites such as Craigslist , Crexi , and Instant Offices .

When choosing a commercial space, you may want to follow these rules of thumb:

• Central location accessible via public transport
• Ventilated and spacious, with good natural light
• Flexible lease that can be extended as your business grows
• Ready-to-use space with no major renovations or repairs needed

Step 3: Brainstorm a Video Game Company Name

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “video games” or “games”, boosts SEO
• Name should allow for expansion, for ex: “Arcadia Entertainment” over “eSports Interactive Games”
• A location-based name can help establish a strong connection with your local community and help with the SEO but might hinder future expansion

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Find a Domain

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Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. 

Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Video Game Company Business Plan

Here are the key components of a business plan:

• Executive Summary: Present a concise overview of your video game company, emphasizing its focus on developing engaging, innovative games for various platforms.
• Business Overview: Describe your company’s specialization in video game development, including genres, platforms (like PC, consoles, or mobile), and player experiences.
• Product and Services: Detail the types of games you plan to develop, such as action, strategy, or educational games, and additional services like game updates or community management.
• Market Analysis: Assess the current video game market, identifying trends, target demographics, and consumer preferences in gaming.
• Competitive Analysis: Compare your games and development approach to other gaming companies, focusing on what sets your games apart, like unique gameplay mechanics, storylines, or graphics.
• Sales and Marketing: Outline your strategy for marketing and selling your games, including digital distribution channels, partnerships with publishers, or participation in gaming conventions.
• Management Team: Highlight the qualifications and experience of your team, especially in game development, design, and project management.
• Operations Plan: Describe the game development process, from concept and design to coding, testing, and release.
• Financial Plan: Provide an overview of financial aspects, including development costs, revenue models (like sales or subscriptions), and funding strategies.
• Appendix: Include supplementary documents such as game design documents, market research data, or partnership agreements to support your business plan.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business!

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you’re planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to video game companies.

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state.

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your video game company will shape your taxes, personal liability, and business registration requirements, so choose wisely.

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have. 

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Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN.

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you’re completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans : This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans : The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
• Government grants : A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Venture capital : Venture capital investors take an ownership stake in exchange for funds, so keep in mind that you’d be sacrificing some control over your business. This is generally only available for businesses with high growth potential.
• Angel investors: Reach out to your entire network in search of people interested in investing in early-stage startups in exchange for a stake. Established angel investors are always looking for good opportunities. 
• Friends and Family : Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding : Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal : Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best option, other than friends and family, for funding a video game business. You might also try crowdfunding if you have an innovative concept. At some point, if your company is poised for high growth, you may be able to attract venture capital or angel investors.

Step 8: Apply for Video Game Company Licenses and Permits

Starting a video game business requires obtaining a number of licenses and permits from local, state, and federal governments.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits.

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more.

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your video game business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account.

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability : The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property : Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance : Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation : Provides compensation to employees injured on the job.
• Property : Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto : Protection for your company-owned vehicle.
• Professional liability : Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP) : This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business.

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.

You may want to use game development software, such as Unreal Engine , BuildBox , or GameMaker Studio , to develop your games.

• Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero . 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial. 

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using services like WordPress, Wix, or Squarespace . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

They are unlikely to find your website, however, unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google.

Here are some powerful marketing strategies for your future business:

• Engage Influencers: Leverage the power of social media influencers to showcase your game. Collaborate with gaming influencers and streamers to create buzz, generate excitement, and reach a wider audience.
• Interactive Demos and Beta Testing: Offer interactive demos and beta testing opportunities to build anticipation and gather feedback. This not only involves the gaming community but also creates a sense of exclusivity and involvement.
• Strategic Partnerships: Form partnerships with other businesses in the gaming industry, such as hardware manufacturers, gaming accessory companies, or even esports organizations. Cross-promotions can significantly broaden your game’s reach.
• Community Building: Foster a strong online community around your game. Utilize forums, social media groups, and Discord channels to connect players, share updates, and create a loyal fan base that becomes your game’s advocate.
• Storytelling and Content Creation: Craft compelling stories around your game and its development. Share behind-the-scenes content, developer diaries, and engaging narratives to create a deeper connection with your audience.
• Participate in Gaming Events: Attend and showcase your game at gaming conventions, conferences, and events. This provides an excellent platform to interact with potential players, receive real-time feedback, and create a memorable presence.
• Targeted Advertising: Use targeted advertising on platforms like Google Ads and social media to reach specific demographics interested in your game genre. Tailor your ad content to highlight unique features and gameplay experiences.
• In-Game Events and Challenges: Create in-game events and challenges to keep players engaged. Encourage user-generated content, share highlights on social media, and reward participants to enhance community involvement.
• Localized Marketing: Tailor your marketing efforts to specific regions and cultural preferences. Localized campaigns, translations, and understanding regional gaming trends can make your game more appealing to diverse audiences.
• Leverage User Reviews: Encourage players to leave reviews and testimonials. Positive user reviews act as powerful endorsements, influencing potential players and building trust in the gaming community.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your video game company meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire.

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your video game business could be:

• Our sports games will make you the MVP
• You’ve never seen game graphics like this 
• The best games for gamer girls! 

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a video game business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in video games for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in video games. You’ll probably generate new customers or find companies with which you could establish a partnership.

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a video game business include:

• Designers – video game design
• Developers – develop the game technology
• General Manager – staff management, accounting
• Marketing Lead – SEO strategies, social media

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need.

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent.

Step 13: Run a Video Game Company – Start Making Money!

Video games are exploding, so if you’re a gamer with some programming experience, now is the perfect time to open your own game shop and ride the wave. You could start from home, launch with a free game, and build some buzz before going big. 

Now that you know what to do, it’s time to start designing games and begin your entrepreneurial journey to success!

• Video Game Business FAQs

Video games can be incredibly profitable, but the key is creating a hit game that stands out from the crowd and goes viral.

Starting a video game company can be challenging due to the highly competitive and rapidly evolving nature of the industry. It requires a significant investment in resources, including talent, technology, and funding, and a clear understanding of the market demand and trends.

Yes, it is possible to publish a game without a company, especially with the advent of digital distribution platforms such as Steam, App Store, or Google Play. However, forming a company can provide benefits such as liability protection, access to funding and resources, and the ability to establish a brand identity and reputation.

The duration of video game copyright varies depending on the country and the type of copyright protection. In the United States, video games are typically protected by copyright for 70 years after the death of the author or the last surviving author in the case of multiple creators.

The process of designing and developing a video game can involve several stages, including concept ideation, prototyping, pre-production, production, testing, and release. It typically involves a multidisciplinary team of professionals, such as game designers, programmers, artists, musicians, writers, and testers, who collaborate to create a compelling and engaging gaming experience.

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• Decide if the Business Is Right for You
• Hone Your Idea
• Brainstorm a Video Game Company Name
• Create a Video Game Company Business Plan
• Register Your Business
• Register for Taxes
• Fund your Business
• Apply for Video Game Company Licenses and Permits
• Open a Business Bank Account
• Get Business Insurance
• Prepare to Launch
• Build Your Team
• Run a Video Game Company - Start Making Money!

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Game Business Plan Template & Guidebook

Are you an aspiring game developer or entrepreneur looking for the perfect plan to start your business? The #1 Game Business Plan Template & Guidebook is the ultimate companion for anyone creating and executing a successful video game business. With easy-to-follow advice and step-by-step instructions, this resource provides an in-depth roadmap to help you reach your goals. Created by industry experts, this template and guidebook will equip you with the knowledge you need to launch a successful gaming business.

Get worry-free services and support to launch your business starting at $0 plus state fees.

• How to Start a Profitable Game Business [11 Steps]
• 10+ Best & Profitable Game Business Ideas [2023]

How to Write a Game Business Plan in 7 Steps:

1. describe the purpose of your game business..

The first step to writing your business plan is to describe the purpose of your game business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.

It also helps to include a vision statement so that readers can understand what type of company you want to build.

Here is an example of a purpose mission statement for a game business:

Our mission is to create and launch video games that captivate our target audience, provide value to our customers, and help evolve the gaming industry. We strive to continuously iterate and innovate on our products in order to stay ahead of the competition and bring joy to gamers of all ages.

2. Products & Services Offered by Your Game Business.

The next step is to outline your products and services for your game business. 

When you think about the products and services that you offer, it's helpful to ask yourself the following questions:

• What is my business?
• What are the products and/or services that I offer?
• Why am I offering these particular products and/or services?
• How do I differentiate myself from competitors with similar offerings?
• How will I market my products and services?

You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.

3. Build a Creative Marketing Stratgey.

If you don't have a marketing plan for your game business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals. 

A good marketing plan for your game business includes the following elements:

Target market

• Who is your target market?
• What do these customers have in common?
• How many of them are there?
• How can you best reach them with your message or product?

Customer base 

• Who are your current customers? 
• Where did they come from (i.e., referrals)?
• How can their experience with your game business help make them repeat customers, consumers, visitors, subscribers, or advocates for other people in their network or industry who might also benefit from using this service, product, or brand?

Product or service description

• How does it work, what features does it have, and what are its benefits?
• Can anyone use this product or service regardless of age or gender?
• Can anyone visually see themselves using this product or service?
• How will they feel when they do so? If so, how long will the feeling last after purchasing (or trying) the product/service for the first time?

Competitive analysis

• Which companies are competing with yours today (and why)? 
• Which ones may enter into competition with yours tomorrow if they find out about it now through word-of-mouth advertising; social media networks; friends' recommendations; etc.)
• What specific advantages does each competitor offer over yours currently?

Marketing channels

• Which marketing channel do you intend to leverage to attract new customers?
• What is your estimated marketing budget needed?
• What is the projected cost to acquire a new customer?
• How many of your customers do you instead will return?

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4. Write Your Operational Plan.

Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations. 

In it, you should list:

• The equipment and facilities needed
• Who will be involved in the business (employees, contractors)
• Financial requirements for each step
• Milestones & KPIs
• Location of your business
• Zoning & permits required for the business

What equipment, supplies, or permits are needed to run a game business?

• Gaming consoles (e.g. Xbox, PlayStation)
• PCs/laptops for gaming
• HDTV/monitor for gaming
• Gaming controllers/joysticks
• Software licenses
• Internet access and router or modem
• Uninterruptible Power Supply (UPS)
• Sound system (e.g. speakers and microphones)
• Game discs/memory cards
• Cash register or POS system
• Business permit and license

5. Management & Organization of Your Game Business.

The second part of your game business plan is to develop a management and organization section.

This section will cover all of the following:

• How many employees you need in order to run your game business. This should include the roles they will play (for example, one person may be responsible for managing administrative duties while another might be in charge of customer service).
• The structure of your management team. The higher-ups like yourself should be able to delegate tasks through lower-level managers who are directly responsible for their given department (inventory and sales, etc.).
• How you’re going to make sure that everyone on board is doing their job well. You’ll want check-ins with employees regularly so they have time to ask questions or voice concerns if needed; this also gives you time to offer support where necessary while staying informed on how things are going within individual departments too!

6. Game Business Startup Expenses & Captial Needed.

This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.

Typically, expenses for your business can be broken into a few basic categories:

Startup Costs

Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a game business varies based on many different variables, but below are a few different types of startup costs for a game business.

Running & Operating Costs

Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.

Marketing & Sales Expenses

You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your game business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.

7. Financial Plan & Projections

A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your game business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses. 

Here are some steps you can follow to devise a financial plan for your game business plan:

• Determine your start-up costs: This will include the cost of purchasing or leasing the space where you will operate your business, as well as the cost of buying or leasing any equipment or supplies that you need to start the business.
• Estimate your operating costs: Operating costs will include utilities, such as electricity, gas, and water, as well as labor costs for employees, if any, and the cost of purchasing any materials or supplies that you will need to run your business.
• Project your revenue: To project your revenue, you will need to consider the number of customers you expect to have and the average amount they will spend on each visit. You can use this information to estimate how much money you will make from selling your products or services.
• Estimate your expenses: In addition to your operating costs, you will need to consider other expenses, such as insurance, marketing, and maintenance. You will also need to set aside money for taxes and other fees.
• Create a budget: Once you have estimated your start-up costs, operating costs, revenue, and expenses, you can use this information to create a budget for your business. This will help you to see how much money you will need to start the business, and how much profit you can expect to make.
• Develop a plan for using your profit: Finally, you will need to decide how you will use your profit to grow and sustain your business. This might include investing in new equipment, expanding the business, or saving for a rainy day.

Frequently Asked Questions About Game Business Plans:

Why do you need a business plan for a game business.

A business plan for a game business is important because it lays out the goals and objectives of the business, plans out strategies for achieving those goals, and outlines the resources needed to ensure success. It also outlines potential challenges the business might face and how best to address them. Furthermore, a business plan can help secure financing for a game business if needed, since it provides investors with an overview of the company and its goals.

Who should you ask for help with your game business plan?

Depending on the complexity of your business plan, there are a few people and resources you could consult. These include small business lawyers, accountants, and business consultants who specialize in the gaming industry. Additionally, there are online resources and local Small Business Development Centers that can provide guidance on writing a business plan.

Can you write a game business plan yourself?

Yes, a game business plan can be written by yourself. It is important to research the current industry trends, research the target market and create a detailed product plan. Additionally, you should document your financial goals, project costs and any potential risks associated with launching and maintaining the game. Finally, you should develop a detailed marketing strategy that outlines how you will promote the game and acquire customers.

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Video Game Company Business Plan Template

Explore Options to Get a Business Plan.

Are you interested in starting your own video game company Business?

Introduction

Global market size, target market, business model, competitive landscape, legal and regulatory requirements, financing options, marketing and sales strategies, operations and logistics, human resources & management, why write a business plan.

• Business Plans can help to articulate and flesh out the business’s goals and objectives. This can be beneficial not only for the business owner, but also for potential investors or partners
• Business Plans can serve as a roadmap for the business, helping to keep it on track and on target. This is especially important for businesses that are growing and evolving, as it can be easy to get sidetracked without a clear plan in place.
• Business plans can be a valuable tool for communicating the business’s vision to employees, customers, and other key stakeholders.
• Business plans are one of the most affordable and straightforward ways of ensuring your business is successful.
• Business plans allow you to understand your competition better to critically analyze your unique business proposition and differentiate yourself from the market.
• Business Plans allow you to better understand your customer. Conducting a customer analysis is essential to create better products and services and market more effectively.
• Business Plans allow you to determine the financial needs of the business leading to a better understanding of how much capital is needed to start the business and how much fundraising is needed.
• Business Plans allow you to put your business model in words and analyze it further to improve revenues or fill the holes in your strategy.
• Business plans allow you to attract investors and partners into the business as they can read an explanation about the business.
• Business plans allow you to position your brand by understanding your company’s role in the marketplace.
• Business Plans allow you to uncover new opportunities by undergoing the process of brainstorming while drafting your business plan which allows you to see your business in a new light. This allows you to come up with new ideas for products/services, business and marketing strategies.
• Business Plans allow you to access the growth and success of your business by comparing actual operational results versus the forecasts and assumptions in your business plan. This allows you to update your business plan to a business growth plan and ensure the long-term success and survival of your business.

Business Plan Content

• Executive Summary
• Company Overview
• Industry Analysis
• Consumer Analysis
• Competitor Analysis & Advantages
• Marketing Strategies & Plan
• Plan of Action
• Management Team

The financial forecast template is an extensive Microsoft Excel sheet with Sheets on Required Start-up Capital, Salary & Wage Plans, 5-year Income Statement, 5-year Cash-Flow Statement, 5-Year Balance Sheet, 5-Year Financial Highlights and other accounting statements that would cost in excess of £1000 if obtained by an accountant.

The financial forecast has been excluded from the business plan template. If you’d like to receive the financial forecast template for your start-up, please contact us at [email protected] . Our consultants will be happy to discuss your business plan and provide you with the financial forecast template to accompany your business plan.

Instructions for the Business Plan Template

To complete your perfect Video Game Company business plan, fill out the form below and download our Video Game Company business plan template. The template is a word document that can be edited to include information about your Video Game Company business. The document contains instructions to complete the business plan and will go over all sections of the plan. Instructions are given in the document in red font and some tips are also included in blue font. The free template includes all sections excluding the financial forecast. If you need any additional help with drafting your business plan from our business plan template, please set up a complimentary 30-minute consultation with one of our consultants.

Ongoing Business Planning

Want a bespoke business plan for your video game company business, our expertise, video game company business plan template faqs, what is a business plan for a/an video game company business, how to customize the business plan template for a video game company business, what financial information should be included in a video game company business plan, are there industry-specific considerations in the video game company business plan template, how to conduct market research for a video game company business plan, what are the common challenges when creating a business plan for a video game company business, how often should i update my video game company business plan, can i use the business plan template for seeking funding for a video game company business, what legal considerations are there in a video game company business plan.

Business Plan Template for Video Game Developers

• Great for beginners
• Ready-to-use, fully customizable Subcategory
• Get started in seconds

Are you a video game developer with big dreams of creating the next gaming sensation? Look no further than ClickUp's Business Plan Template for Video Game Developers! This template is specifically designed to help you outline every aspect of your game development venture, from your overall vision to your marketing strategies and projected budgets. With this template, you'll be able to:

• Clearly define your target audience and how your game will appeal to them
• Articulate your game concept, story, and unique selling points
• Plan and manage your financials, including projected revenues and budgets
• Create a comprehensive marketing strategy to reach your target audience

Don't let the complexities of game development hold you back. Get started with ClickUp's Business Plan Template for Video Game Developers and turn your gaming dreams into a reality!

Business Plan Template for Video Game Developers Benefits

A business plan template for video game developers offers a range of benefits to aspiring game creators and development companies, including:

• Streamlining the planning process with a comprehensive framework for outlining the vision, goals, and strategies for the game development project
• Providing a clear roadmap for securing funding and attracting potential investors by showcasing the market potential, target audience, and revenue projections
• Guiding the development process by detailing the game concept, mechanics, art style, and technical requirements
• Facilitating effective marketing strategies by outlining the target audience, competitive analysis, and promotion tactics
• Ensuring financial viability and success by projecting budgets, expenses, and revenue streams to maintain profitability throughout the development lifecycle.

Main Elements of Video Game Developers Business Plan Template

When it comes to developing video games, having a solid business plan is crucial. ClickUp's Business Plan Template for Video Game Developers includes:

• Custom Statuses: Track the progress of each section of your business plan with statuses like Complete, In Progress, Needs Revision, and To Do, ensuring that nothing falls through the cracks during the development process.
• Custom Fields: Utilize custom fields such as Reference, Approved, and Section to add specific details to your business plan, making it easy to organize and reference important information.
• Custom Views: Access different views like Topics, Status, Timeline, Business Plan, and the Getting Started Guide to get a comprehensive overview of your business plan, track progress, and stay on top of deadlines.
• Collaboration Tools: Collaborate seamlessly with your team, assign tasks, set due dates, and leave comments directly within ClickUp, ensuring everyone is on the same page throughout the development process.
• Integration: Integrate with other tools like Gantt charts, calendars, and document editors to enhance your business plan and streamline your workflow.

How To Use Business Plan Template for Video Game Developers

Are you a video game developer looking to create a solid business plan? Look no further! Follow these six steps to effectively use the Business Plan Template for Video Game Developers in ClickUp:

1. Define your vision and mission

Start by clarifying your vision for your video game development business. What kind of games do you want to create? Who is your target audience? Then, articulate your mission statement, which outlines the purpose and values of your business.

Use a Doc in ClickUp to jot down your vision and mission statements and keep them easily accessible.

2. Research the market

Next, conduct thorough market research to gain insights into the video game industry. Analyze trends, identify competitors, and determine potential opportunities and challenges. This information will help you make informed decisions and set realistic goals for your business.

Utilize the Automations feature in ClickUp to streamline your market research process and gather relevant data.

3. Outline your development and production process

Detail the steps involved in the game development and production process. From concept creation to design, programming, testing, and release, map out each stage and the resources required. This will ensure smooth operations and efficient project management.

Visualize your process using the Gantt chart feature in ClickUp to create a timeline and track progress.

4. Develop a marketing and sales strategy

Devise a comprehensive marketing and sales strategy to promote your games effectively. Identify your target audience, determine the most suitable marketing channels, and establish pricing and distribution strategies. Consider leveraging social media, influencers, and partnerships to reach your target market.

Plan and schedule your marketing activities using the Calendar view in ClickUp to stay organized and track your progress.

5. Create a financial plan

Develop a detailed financial plan that includes projected revenue, expenses, and profit margins. Consider factors such as development costs, marketing expenses, and potential revenue streams like game sales, in-app purchases, and partnerships. This will help you understand the financial feasibility of your business and secure funding if needed.

Use the Table view in ClickUp to create a spreadsheet and track your financial projections and performance.

6. Review, revise, and execute

Regularly review and revise your business plan to ensure it remains aligned with your goals and market conditions. Seek feedback from stakeholders and make necessary adjustments. Once you're satisfied with your plan, it's time to execute it with dedication and passion.

Set milestones and track your progress using Milestones and Dashboards in ClickUp to stay on top of your business plan.

By following these six steps and utilizing the Business Plan Template for Video Game Developers in ClickUp, you'll be well-equipped to navigate the competitive video game industry and turn your creative ideas into successful ventures.

Get Started with ClickUp’s Business Plan Template for Video Game Developers

Video game developers can use the ClickUp Business Plan Template for Video Game Developers to create a comprehensive plan that covers all aspects of their game development process.

First, hit “Add Template” to sign up for ClickUp and add the template to your Workspace. Make sure you designate which Space or location in your Workspace you’d like this template applied.

Next, invite relevant members or guests to your Workspace to start collaborating.

Now you can take advantage of the full potential of this template to create a solid business plan:

• Use the Topics View to outline and organize the different sections of your business plan, such as vision, target audience, game concept, marketing strategies, and financial projections.
• The Status View will help you track the progress of each section, categorizing them as Complete, In Progress, Needs Revision, or To Do.
• Utilize the Timeline View to set deadlines and milestones for each section of your business plan, ensuring that you stay on track.
• The Business Plan View provides an overview of your entire plan, allowing you to see how all the sections fit together.
• Create a Getting Started Guide View to outline the steps and resources required to kickstart your game development process.
• Use custom fields like Reference, Approved, and Section to add additional information and categorize different elements of your business plan.
• Collaborate with team members and stakeholders to gather feedback, make revisions, and ensure your business plan is comprehensive and compelling.
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Video Game Business Plan Sample

Published Dec.05, 2014

Updated Apr.24, 2024

By: Noor Muhammad

Average rating 5 / 5. Vote count: 6

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Table of Content

Introduction

Starting and running a video game company smoothly is not everyone’s cup of tea. Gaming is a multi-billion dollar business in the US alone. Video games seem to be the products made only for children. In reality, most of the video games are developed by considering the needs of adult gamers. According to the data provided by the Entertainment Software Association, around 81% people from 18 to 29 years of age play video games. Therefore, it is vital to prepare a well-written gaming business plan to lure investors .

Frequently asked questions of game company business plan

To draft a video game development business plan , you need to consider the following questions –

• Do you have proper financial planning?
• What business model you have to sell your game software, i.e. DVD, downloadable software, mobile gaming, distributor etc.?
• Who are in your competition, like resellers, local game store, etc?
• Do you have brick-and-mortar enterprise, online business, or both?
• What are the production resources you have to meet market demand?

Executive Summary

You may have definitely heard the popular saying, “The first impression is the last impression.” Therefore, the executive summary of your  video games business plan  is the first impression towards your investors. It serves as an overview of your plan as a whole. Be sure to limit your executive summary to one page only and also explain your products, your target players, and why you want to sell your product.

Company Overview

It is where most startups make mistake. A poorly written punch line can severely weaken the insight of your company. Therefore, you should answer the following strongly in your mission statement –

• What do you do?
• How do you do your business?
• What value do you provide?
• Whom do you serve to?

In your  video game startup business plan , you will also need to discuss your staff, what they do, and your company’s legal structure like a corporation, LLC, or partnership firm.

Market Research

Market research is not a child’s play in gaming. You might have been running the game company most efficiently in the world, but your efforts are worthless if your users do not understand what your game is. In your  business plan for a video game company , explain the type of your game like RPG, shooter, multiplayer, adventure, etc. Find out the games like yours. Find out what kind of players would like your game (and even buy). Here, you need to dig deeper.

In this section of your  video game developer business plan , you need to discuss what you want to sell, projected life/life cycle of the product, how you want to distribute, price it and who wants to buy it. Give a detailed overview of your game product, while being straight to the point. It will help you attract investors.

Marketing plan

Well, it is the most complex part of the game development business plan . You should split it into three parts – communication, growth strategy, and prospects.

Growth strategy includes how you want to grow your business. You might be making more products for your target audience. There are certain ways in your mind to beat your competition.

Explain how you will talk to your target players through communication. You should present a specific plan and explain where your players are, how you will get on board, and how your software is appealing to them.

In prospects, you will need to explain opportunities, which could play a vital role in your marketing. Are you doing something unique? Is it something talked about but has never been done before?

Financial Projections

Typically, standard financial plans show income statements or balance sheets. Well, not every game developer knows how to interpret or create financial statements. You may have conducted research on how similar games are developed. It is also vital to add in capitalization table, which shows the amount of equity owned by the founders.

In your  video game business plan sample , also explain the budget you need to allow to your marketing. You need to do proper research in this aspect because marketing is the hardest part of game development. The marketing budget is necessary for your game development business plan or it will seem a huge red flag.

How to order writing business plan game company?

If you are looking for the best  video game business plan template , OGS Capital is the best choice. We have experienced business consultants and network with investors to turn your business idea into reality.

Download Video Game Business Plan Sample in pdf

Professional OGS capital writers specialized also in themes such as online shopping site business plan , cyber security business ideas , business plans for graphic design , internet radio business plan , online dating business plan , business plan for a video game company and many others.

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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Home » Sample Business Plans » Wholesale & Retail

A Sample Video Game Store Business Plan Template

Are you about starting a video game store? If YES, here is a complete sample video game store business plan template & feasibility report you can use for FREE . Okay, so we have considered all the requirements for starting a video game store. We also took it further by analyzing and drafting a sample video game store business marketing plan template backed up by actionable guerrilla marketing ideas for video game stores. So let’s proceed to the business planning section.

Why Start a Video Game Store?

Starting a video game store business is just like starting any other retail business, and it will require startup capital, planning (feasibility studies, market survey, budgeting), and of course time.

A video game store retails different types of video games and accessories. If you are considering starting this type of business, then you must hunt for the right location, a location with the right demographic composition. With the right location, items in stock, and good pricing structure, you can start making profit as soon as possible after opening your business.

If you are sure this type of business is what you truly want to do after you must have conducted your feasibility studies and market research, then the next step to follow is to write a good business plan; a detailed blue print of how you intend raising your seed capital, setting up the business, managing the flow of the business, sorting out tax and marketing your products .

The truth is that it is one thing to have a fantastic idea cum business plan, it is another thing for the business plan to translate to money, which is why it is important to assemble a team of dedicated workers to work with if you want to be successful with your video game store business.

Below is a sample video game store business plan template that will help you successfully write yours without much stress.

1. Industry Overview

Video game store business is categorized under the video game retail store industry and businesses in this industry retail a wide range of toy and hobby goods, such as traditional dolls and toys, electronic toys (including video and electronic games), board games, hobby kits and craft supplies et al. These goods are retailed to the general public after they are purchased from local and international manufacturers and wholesalers.

In recent time, the video game retail store industry has done brilliantly, growing in line with economic recovery. On the other hand, competition from discount department stores and e-commerce channels has absorbed much of the demand for industry products by offering low prices and one-stop-shop convenience. In view of that, discount stores have become the leading hobby and toy retailers in the united states.

IBISWorld projected that despite an extremely competitive environment both internally and externally, hobby and toy retailers are expected to experience growth over the five years to 2022.

The Video game retail stores industry is indeed a very large industry and pretty much thriving in all the parts of the world. Statistics has it that in the United States of America alone, there are about 21,563 legally registered video game retail stores responsible for employing about 158,296 employees and the industry rakes in a whooping sum of $20bn annually.

It is important to state that; the industry experienced a 1.1 percent growth between 2013 and 2018. Hobby Lobby Stores Inc. and Michaels Stores have the lion shares in the USA market.

A recent research conducted by IBISWorld shows that the Video game retail stores industry has crafted moderate revenue growth over the past five years. Operators in this industry retail a variety of toys and hobby goods, including dolls, electronic toys, games, hobby kits and craft supplies.

The research also shows that over the five years to 2018, industry operators steadily recovered from recessionary lows, in line with improving economic conditions. As consumer income rose during the period, competition intensified and operators both within and external to the industry fought to win over consumers.

Increased competition from discount department stores and online retailers stifled industry sales and profitability, as lower-priced comparable products increasingly lured customers away from traditional industry operators.

In summary, video game store business is evergreen and thriving. In response to the ever-growing demand for video games and accessories, players in the industry are now opening additional stores thereby creating chains of stores across different cities. They are always ready to expanded into new markets and of course adapt to the changing trend in consumer tastes and increase sales.

2. Executive Summary

Planet Excel™ Video Game Store, Inc. is a neighborhood video game retail store that will be located in a growing community in Lake Street, Petoskey – Michigan. We conducted our feasibility studies and market survey and we came to the conclusion that Lake Street, Petoskey is the right location for us to launch our video game retail store.

We are in the video game store line of business to make profits at the same time to give our customers value for their money. We want to give people who patronize our video games the opportunity to choose from a wide range of video games and other related products. We will leverage on all major retail channels, including specialty stores, merchandisers and online store.

We are aware that there are several video game stores and even toy and hobby chains of stores that also retail video games and accessories all around Petoskey – Michigan, which is why we spent time and resources to conduct our feasibility studies and market survey so as to enable us locate the business in an area that will support the growth of the business

We ensured that our facility is easy to locate and our outlet is equipped with the various payment of options available in the United States of America Much more than retailing quality and affordable video games and related products, we will ensure that our customer care is second to none in the whole of Lake Street, Petoskey – Michigan.

We know that our customers are the reason why we are in business which is why we will go the extra mile to get them satisfied whenever they visit our store. Planet Excel™ Video Game Store, Inc. will ensure that all our customers are given first class treatment whenever they visit our store.

We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large they may grow to. We will ensure that we get our customers involved in the selection of brands that will be on our racks and also when making some business decisions that will directly or indirectly affect them.

Planet Excel™ Video Game Store, Inc. is owned by Joel Anderson and his immediate family members. Joel Anderson has successfully managed several video game retail stores both in Petoskey and Dallas – Texas prior to opening his own video game store. Joel Anderson has a Degree in Business Administration and he will run the business alongside his immediate family members.

3. Our Products and Services

Planet Excel™ Video Game Store, Inc. is going to operate a registered neighborhood video game store that will retail a wide range of video games and video games accessories. We are in the video game retail industry to make profits and give our customers value for their money.

These are some of the products that we will retail in our video game retail store;

• A wide range of video games from top flight video games companies like Microsoft Corporation, Nintendo Co. Ltd., Activision Blizzard Inc., GameStop Corp., Sony Corporation and Electronic Arts Inc.
• Video games renting services
• Sale of Video games and accessories

4. Our Mission and Vision Statement

• Our vision is to establish a one stop video game store business in Lake Street, Petoskey – Michigan.
• Our mission is to establish a video game retail store that will make available a wide range of video games and accessories from top brands at affordable prices to the residents of Lake Street, Petoskey.

Our Business Structure

Our intention of starting a video game store is to build a standard video game retail store that will be a one – stop shop, which is why we will ensure that we put the right structures in place that will support the kind of growth that we have in mind while setting up the business.

We will ensure that we only hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all our stake holders. As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of five years or more especially when we start selling our franchise or running chains of video game retail stores.

In view of that, we have decided to hire qualified and competent hands to occupy the following positions;

• Chief Executive Officer (Owner)
• Store Manager

Merchandize Manager

Sales and Marketing Manager

• Accountants/Cashiers
• Store Attendant/Customer Services Executive

5. Job Roles and Responsibilities

Chief Executive Officer – CEO (Owner) :

Grows management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinion

Accountable for fixing prices and signing business deals

Responsible for providing direction for the business

Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.

Responsible for signing checks and documents on behalf of the company

Assesses the success of the organization

Store Manager:

• Responsible for managing the daily activities in the store
• Ensures that the store facility is in tip top shape and conducive enough to welcome customers
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Carries out induction for new team members
• Responsible for training, evaluation and assessment of employees
• Ensures that goods and products are properly arranged
• Handles any other duty as assigned by the CEO
• Manages vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
• Helps to ensure consistent quality of video games and video games accessories on our rack
• Responsible for the purchase of video games and video games accessories for the organization
• Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
• Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Models demographic information and analyze the volumes of transactional data generated by customer purchases
• Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Documents all customer contact and information
• Represents the company in strategic meetings
• Helps increase sales and growth for the company

Accountant/Cashier

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensures compliance with taxation legislation
• Handles all financial transactions for the organization
• Serves as internal auditor for the organization

Store Attendant/Client Service Executive

• Ensures that all contacts with customer (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with customers on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the store manager in an effective and timely manner
• Consistently stays abreast of any new information on products, promotional campaigns etc. to ensure accurate and helpful information is supplied to our customers when they make enquiries
• Provides information about warranties, manufacturing specifications, care and maintenance of merchandise and delivery options
• Bags or packages purchases
• Responsible for cleaning the store facility at all times
• Ensures that toiletries and supplies don’t run out of stock
• Handle any other duty as assigned by the store manager.

6. SWOT Analysis

Our plan of starting just one outlet of our video game retail store is to test run the business for a period of 3 to 5 years to know if we will invest more money, expand the business and then open other video games and accessories stores all over Michigan.

We are quite aware that there are several video game retail stores all over Petoskey – Michigan and even in the same location where we intend locating ours, which is why we are following the due process of establishing a business. We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be welled equipped to confront our threats.

Planet Excel™ Video Game Store, Inc. employed the services of an expert HR and Business Analyst with bias in retailing to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives.

This is the summary of the SWOT analysis that was conducted for Planet Excel™ Video Game Store, Inc.

Our location, the business model we will be operating, varieties of payment options, wide range of video games and video games accessories from local and international manufacturing brands and our excellent customer service culture will definitely count as a strong strength for Planet Excel™ Video Game Store, Inc.

A major weakness that may count against us is the fact that we are a new video game retail store in Lake Street, Petoskey – Michigan and we don’t have the financial capacity to engage in the kind of publicity that we intend giving the business.

• Opportunities:

The fact that we are going to be operating our video games and accessories store in one of the huge residential estates with the right demographic composition in Lake Street, Petoskey – Michigan provides us with unlimited opportunities to sell our video games to a large number of people.

We have been able to conduct thorough feasibility studies and market survey and we know what our potential customers will be looking for when they visit our retail store. We are well positioned to take on the opportunities that will come our way.

We are quite aware that the rising popularity of e-commerce poses a significant threat to the video games business, as consumers may substitute goods purchased online for goods purchased at video game stores due to the affordability and convenience of e-commerce and the wider range of goods that are available online.

E-commerce sales are expected to rise in 2018, posing a potential threat to the industry. Another threat that may likely confront us is the arrival of a new video games and video games accessories are retailed.

7. MARKET ANALYSIS

• Market Trends

If you are close observer of the toys and hobby goods industry, you will agree that during the last five years, the intensely competitive environment has driven many small players to exit the industry. Due to their size, large companies are able to offer competitively priced goods and the number of children under the age of nine is projected to grow.

Please note that spending on hobby goods and toys is generally discretionary; therefore, a rise in household disposable income would increase the propensity for customers to purchase more industry goods, leading to growth in demand. Per capita disposable income is expected to increase in 2018, creating a potential opportunity for the industry.

Although these trends are forecast to continue over the next 5 years, some video game retail stores will benefit from increasing demand for new technologies, such as video games. Beyond every reasonable doubt, the video game retail store that can successfully flow with the trend and keep up with consumer and technology trends will definitely fare well in the coming years

It is now a common phenomenon for video game retail stores to leverage on technology to effectively predict consumer demand patterns and to strategically position their store to meet their needs; in essence, the use of technology helps retailers to maximize supply chain efficiencies. No doubt data collected from customers goes a long way to help retail stores serve them better.

8. Our Target Market

When it comes to selling items that are found in video game retail stores, there is indeed a wide range of available customers. In essence, our target market can’t be restricted to just a group of people, but all those who reside in the locations where we intend opening our video game retail store. One thing is certain, we will ensure that we only retail quality and affordable items in our video game retail store.

In view of that, we have positioned our video game retail store to service residents of Petoskey – Michigan and every other location where our video game retail store will be located in the United States of America. We are in business to retail video games and video games accessories to the following groups of people;

• Schools and Students
• Households (parents)
• Video game lounge owners
• Video game rental business owners

Our competitive advantage

The competitive advantages that will help us standout from our competitors is not restricted to having an exclusive sales contract, stocking seasonal products and access to highly skilled workforce. Planet Excel™ Video Game Store, Inc. is launching a standard video game retail store that will indeed become the preferred choice in Lake Street, Petoskey – Michigan.

Our video game retail store is located in a corner piece property on a busy road directly opposite one of the largest residential estates in Petoskey – Michigan. One thing is certain, we will ensure that we have a wide range of quality and affordable items in our store at all times. It will be difficult for customers to visit our store and not see the items that they are looking for.

Our highly experienced and qualified management, customer service culture, online store, various payment options and highly secured facility with enough packing space will also serve as a competitive advantage for us.

Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Planet Excel™ Video Game Store, Inc. is established with the aim of maximizing profits in the industry and we are going to go ensure that we do all it takes to sell a wide range of video games to a wide range of customers. Planet Excel™ Video Game Store, Inc. will generate income by;

• Retailing a wide range of video games from top flight video games companies like Microsoft Corporation, Nintendo Co. Ltd., Activision Blizzard Inc., GameStop Corp., Sony Corporation and Electronic Arts Inc.
• Sale of video games accessories
• Retailing traditional entertainment and learning games

10. Sales Forecast

It is important to state that our sales forecast is based on the data gathered during our feasibility studies, market survey and also some of the assumptions readily available on the field.

One thing is common with video game retail store, the larger the store, the larger the number of customers that will patronize them. Although we may not be as large as Hobby Lobby Stores Inc.and Michaels Stores, but we will ensure that within our capacity we make available a wide range of items from different brands in our store.

Below are the sales projections that we were able to come up with for the first three years of operations;

• First Fiscal Year: $120,000
• Second Fiscal Year: $250,000
• Third Fiscal Year: $450,000

N.B : This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and the arrival of a competitor in same location as ours within the period stated above. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

Prior to choosing a location for Planet Excel™ Video Game Store, Inc. we conduct a thorough market survey and feasibility studies in order for us to penetrate the available market and become the preferred choice in Petoskey – Michigan.

We hired experts who have good understanding of the video game retail stores industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Lake Street, Petoskey – Michigan.

In summary, Planet Excel™ Video Game Store, Inc. will adopt the following sales and marketing approach to win customers over;

• Introduce our video game retail store by sending introductory letters to schools, residence, and other key stake holders in and around Lake Street, Petoskey – Michigan
• Open our video game retail store with an open house party for children in the community
• Advertise our business in community based newspapers, local TV and radio stations
• List our business on yellow pages’ ads (local directories)
• Attend trade fairs and relevant exhibitions to sell our video game and video game accessories
• Leverage on the internet to promote our business
• Engage in direct marketing
• Encourage word of mouth marketing (referrals) from satisfied and loyal customers

11. Publicity and Advertising Strategy

Despite the fact that our video game retail store is well located, we will still go ahead to intensify publicity for the business. We are going to explore all available means to promote our video game retail store.

Planet Excel™ Video Game Store, Inc. has a long-term plan of opening chains of video game retail stores in various locations, which is why we will deliberately build our brand to be well accepted in Lake Street, Petoskey – Michigan before venturing out.

Here are the platforms we intend leveraging on to promote and advertise Planet Excel™ Video Game Store, Inc.;

• Place adverts on both print (community based newspapers and magazines) and electronic media platforms
• Sponsor relevant community programs
• Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, et al to promote our brand
• Install our billboards in strategic locations all around Lake Street, Petoskey – Michigan
• Distribute our fliers and handbills in target areas in the community where our video game retail store is located
• Position our Flexi Banners at strategic positions in the location where our video game retail store is located.
• Ensure that all our workers wear our branded shirts and all our vehicles are well branded with our organization’s logo et al.

12. Our Pricing Strategy

Pricing is one of the key factors that gives leverage to video game retail stores, it is normal for consumers to go to places where they can get items at cheaper price which is why big players in the industry attract loads of consumers.

We know we don’t have the capacity to compete with other video game retail stores, but we will ensure that the prices of all the video games and accessories that are available in our store are competitive with what is obtainable amongst video game retail stores within our level and in our location.

• Payment Options

The payment policy adopted by Planet Excel™ Video Game Store, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Planet Excel™ Video Game Store, Inc. will make available to her clients;

• Payment with cash
• Payment via credit cards
• Payment via online bank transfer
• Payment via check
• Payment via mobile money transfer

In view of the above, we have chosen banking platforms that will enable our clients make payment for our video games and video game accessories without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.

13. Startup Expenditure (Budget)

When it comes to starting a video game retail store business, the major areas that you will spend the bulk of your cash is in renting or leasing a standard store facility. Aside from that, you are not expected to spend much except for paying of your employees and the stocking of your store with a wide range of video games and accessories.

These are the key areas where we will spend our startup capital;

• The total fee for registering the Business in the United States of America – $750.
• Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $1,300.
• Marketing promotion expenses for the grand opening of Planet Excel™ Video Game Store, Inc. in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of – $3,580.
• The cost for hiring business consultant – $2,500.
• Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
• The cost for payment of rent for 12 months at $1.76 per square feet in the total amount of $55,240.
• The cost for shop remodeling (construction of racks and shelves) – $20,000.
• Other start-up expenses including stationery ($500) and phone and utility deposits – ($2,500).
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
• The cost for Start-up inventory (stocking with a wide range of both locally and imported quality video games and video game accessories from different manufacturing brands) – $70,000
• The cost for store equipment (cash register, security, ventilation, signage) – $13,750
• The cost of purchase and installation of CCTVs – $5,000
• The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $4,000.
• The cost of Launching a Website – $600
• The cost for our opening party – $7,000
• Miscellaneous – $10,000

We would need an estimate of $200,000 to successfully set up our video game retail store in Lake Street, Petoskey – Michigan.

Generating Fund/Startup Capital for Planet Excel™ Video Game Store, Inc.

Planet Excel™ Video Game Store, Inc. is owned and financed by Joel Anderson and his immediate family members. They do not intend to welcome any external business partners which is why they decided to restrict the sourcing of the startup capital to 3 major sources.

• Generate part of the startup capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from my Bank

N.B : We have been able to generate about $100,000 (Personal savings $75,000 and soft loan from family members $25,000) and we are at the final stages of obtaining a loan facility of $100,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and the business structure. If all of these factors are missing from a business, then it won’t be too long before the business close shop.

One of our major goals of starting Planet Excel™ Video Game Store, Inc. is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to sell our video games and video game accessories a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.

Planet Excel™ Video Game Store, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our organizations’ corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

• Business Name Availability Check : Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Leasing of facility and remodeling the store: In Progress
• Conducting Feasibility Studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Printing of Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Purchase of the needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
• Stocking our store with a wide range of video games and video game accessories: In Progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business both online and around the community: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening party/launching party planning: In Progress
• Compilation of our list of products (video games and video game accessories) that will be available in our store: Completed
• Establishing business relationship with vendors – wholesale suppliers of various brands of products (video games and video game accessories) that we intend retailing: In Progress

More on Wholesale & Retail

Gaming Lounge Business Plan Template

Written by Dave Lavinsky

Gaming Lounge Business Plan

Over the past 10+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their gaming lounge companies.

If you’re unfamiliar with creating a gaming lounge business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a gaming lounge business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Gaming Lounge Business Plan?

A business plan provides a snapshot of your gaming lounge business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Gaming Lounge

If you’re looking to start a gaming lounge business or grow your existing gaming lounge company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your gaming lounge business to improve your chances of success. Your gaming lounge business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Gaming Lounge Businesses

With regards to funding, the main sources of funding for a gaming lounge business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan (hand it to them in person or email to them as a PDF file) and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for gaming lounge companies.

Finish Your Business Plan Today!

How to write a business plan for a gaming lounge business.

If you want to start a gaming lounge business or expand your current one, you need a business plan. The guide and sample below details the necessary information for how to write each essential component of your gaming lounge business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of gaming lounge business you are running and the status. For example, are you a startup, do you have a gaming lounge business that you would like to grow, or are you operating a chain of gaming lounge businesses?

Next, provide an overview of each of the subsequent sections of your plan. 

• Give a brief overv iew of the gaming lounge industry. 
• Discuss the type of gaming lounge business you are operating. 
• Detail your direct competitors. Give an overview of your target customers. 
• Provide a snapshot of your marketing strategy. Identify the key members of your team. 
• Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of gaming lounge business you are operating.

For example, you m ight specialize in one of the following types of gaming lounge businesses:

• Gaming lounge membership club : While the lounge is dedicated to serious video game play, the members-only club creates a community of friends and hours of enjoyment. Members pay monthly dues for unlimited access to video gaming, virtual reality and class video slot machine play.
• Board game cafe: Board gaming cafes are dedicated to board game aficionados who join any games that appeal to them. Appetizers and beverages may be offered.
• Arcade gaming lounge: For video arcade diehards, the arcade gaming lounge represents the classic arcade games much beloved by players. Games are video slot machine-play.
• Gaming bar and grill: For players who like to combine the latest video games, virtual reality and high-end technology, gaming bars are the go-to place. Players typically have a choice of beer, wine or cocktails with favorite foods, such as burgers and fries, from the grill. 

In addition to explaining the type of gaming lounge business you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of gamers served, the number of large gaming events held, or, reaching X number of lounges opened, etc.
• Your legal business structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the gaming lounge industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the gaming lounge industry educates you. It helps you understand the market in which you are operating. 

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your gaming lounge business plan:

• How big is the gaming lounge industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential target market for your gaming lounge business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your gaming lounge business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, club members, event partygoers, and corporations.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of gaming lounge business you operate. Clearly, individuals would respond to different marketing promotions than event partygoers, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers. Ideally you can speak with a sample of your target customers before writing your plan to better understand their needs.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are othe r gaming lounge businesses. 

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes bowling alleys with pinball machines, at-home gaming, or gambling with casino-play. You need to mention direct competition, as well.

For each direct competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

• What types of customers do they serve?
• What type of gaming lounge business are they?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide rewards for frequent players?
• Will you offer events, such as video tournaments, that your competition doesn’t?
• Will you provide the newest technology in gaming consoles?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a gaming lounge business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type o f gaming lounge company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide gaming tournaments, rewards for frequent players, themed parties, club membership perks and extended gaming hours on special occasions?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of yo ur plan, yo u are presenting the products and/or services you offer and their prices.

Place : Place refers to the site of your gaming lounge company. Document where your company is situated and mention how the site will impact your success. For example, is your gaming lounge business located in a popular restaurant and theater district, a standalone building or in a “destination” setting? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your gaming lounge marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

• Advertise in gaming magazines
• Reach out to gaming websites 
• Distribute flyers for special gaming events
• Engage in email marketing
• Advertise to club members on social media platforms
• Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your gaming lounge business, including adding and maintaining video machines and equipment, planning and providing tournaments and special events, restocking food inventory, etc. 

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to book your Xth gaming tournament, or when you hope to reach $X in revenue. It could also be when you expect to expand your gaming lounge business to additional locations.

Management Team

To demonstrate your gaming lounge business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company. 

Ideally, you and/or your team members have direct experience in managing gaming lounge businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a gaming lounge business or successfully running a video arcade or casino gaming room.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance s heet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you see 10 new video club memberships per day, or develop new ways to enhance video gamer play areas ? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your gaming lounge business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. 

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a video game room business:

• Cost of gaming equipment and maintenance
• Payroll or salaries paid to staff
• Business insurance
• Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and foodstuffs, board games, barware, or restaurant equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your office location lease or a list of club memberships generating steady income.

Writing a business plan for your gaming lounge business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert and understand how to start a gaming lounge business. You will understand the gaming lounge industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful gaming lounge business.

Gaming Lounge Business Plan FAQs

What is the easiest way to complete my gaming lounge business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your gaming lounge business plan.

How Do You Start a Gaming Lounge Business?

Starting a gaming lounge business is easy with these 14 steps:

• Choose the Name for Your Gaming Lounge Business
• Create Your Gaming Lounge Business Plan
• Choose the Legal Structure for Your Gaming Lounge Business
• Secure Startup Funding for Your Gaming Lounge Business (If Needed)
• Secure a Location for Your Business
• Register Your Gaming Lounge Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Gaming Lounge Business
• Buy or Lease the Right Gaming Lounge Business Equipment
• Develop Your Gaming Lounge Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Gaming Lounge Business
• Open for Business

Where Can I Download a Free Business Plan Template PDF?

Click here to download the pdf version of our basic business plan template.

Our free business plan template pdf allows you to see the key sections to complete in your plan and the key questions that each must answer. The business plan pdf will definitely get you started in the right direction.

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Other Helpful Business Plan Articles & Templates

• Unity Runtime Fee
• Changes to Unity Plans
• Unity Personal
• New value included

The Unity Runtime Fee

The Unity Runtime Fee will only apply to certain games created with Unity Pro and Unity Enterprise. If you’re on a Unity Personal or Unity Plus plan, the Runtime Fee does not apply.

Games created with currently supported Unity versions will not be impacted by the fee. The Runtime Fee is only relevant to games created with, or upgraded to, Unity 6, the next Long Term Support (LTS) version to be released in 2024. For those games, the fee applies only after a game has crossed two thresholds:

• $1,000,000 (USD) in gross revenue (trailing 12 months), AND
• 1,000,000 initial engagements.

If your game crosses both thresholds, you will be charged whichever amount is lower:

• 2.5% of your game’s monthly gross revenue, OR
• The Runtime Fee based on monthly initial engagements.

The Unity Personal plan remains free and the Runtime Fee does not apply to this plan. Starting with Unity 6, we will increase the revenue limit from $100,000 to $200,000 (USD), and make the Made with Unity splash screen optional.

The Runtime Fee does not apply to games created with any currently supported Unity version. It only applies to games created with or upgraded to Unity 6, the next LTS version to be released in 2024.

We will make sure that you can stay on the terms applicable for the version of Unity you are using as long as you keep using that version.

On a monthly basis, you have a choice of the lesser of 2.5% revenue share or the calculated fee based on unique initial engagements per game. Both your initial engagements and your revenue are self-reported.

Frequently asked questions

Below are answers to some of your top questions about the Runtime Fee and Unity plans.

What versions of Unity does the Runtime Fee apply to?

How do i know if the runtime fee applies to my game, will the fee apply if i started creating a game with an earlier version of unity, but ship it with unity 6 or later releases, what about tech stream 2023.1 and 2023.2, how is the unity runtime fee calculated, how does unity define an “initial engagement” for the runtime fee policy, when do my revenue and initial engagements start counting toward the runtime fee thresholds, how does unity expect me to measure the number of initial engagements for my game, do i have to self-report revenue or initial engagements monthly or quarterly, does installing the same game on multiple devices count towards the unity runtime fee, does installing and reinstalling a game count as two separate initial engagements, are games distributed through subscription services, streaming services, or as webgl applications, required to pay the runtime fee, for some of my distribution channels, i do not receive data that i can use as an accurate estimate for initial engagements. how should i report these channels for calculation of the runtime fee, how do i report my data, can i get a discount or a custom deal on the unity runtime fee, who is charged the unity runtime fee, do i still need to pay for my unity subscription plan, how does unity estimate the runtime fee when i have not supplied data, how are nongaming applications impacted by the unity runtime fee, does the unity runtime phone home by default, for the runtime fee, what are group a and group b countries, how do i calculate the runtime fee, what’s the status of the editor terms on github, what are you changing in the terms, is the price increasing for unity pro and enterprise, what changes are being made to unity subscription plans, does the runtime fee apply to unity personal, if i’m on unity personal, will i have the option to customize the splash screen, is there still a revenue limit for eligibility to use unity personal, are there any other changes coming to unity personal, will the unity runtime fee apply to unity plus customers, what changes are coming to unity plus what happens to my existing unity plus plan, what is the latest date i can renew unity plus, what will happen to my unity plus subscription agreement after march 27, 2024, if i don’t upgrade to unity pro, with unity plus being discontinued, can i customize the unity splash screen without migrating to unity 6 or upgrading to unity pro, what is unity devops, what is unity asset manager, what is central administration.

All amounts in U.S. dollars (USD).