business plan game development

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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Business Plan for Video Game Studio – In-Depth Guide

In the next few years, I would like to pivot my career as a business consultant from a very traditional industry to the one that has always fascinated me: video games.

I plan to share all my knowledge online. Absolutely everything! Disclaimer: I also plan to make income through personalized 1: 1 consulting service with those who don't have the time to manage everything!

I very recently published my first article on "Business Plan for Video Game Studio - In-Depth Guide" telling myself that this was going to be the turning point for me to write about several other neglected business aspects of game development (and of their launch). It's here: https://empowered.gg/blog/business-plan-for-video-game-studio-guide/

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Writing a business plan -- advice for indie game developers

Game Dragons' Philip Oliver on an essential but often overlooked tool for building success in indie development

A business plan is a concept that many startups think is either unnecessary or just a nice-to-have. It's often seen as an annoying extra bit of admin that's simply keeping you away from the fun of making games. The reality is that no matter how small scale your business is, or how great your ambitions, it's a vital document that will stand you in great stead for the future. Thinking about what you want to achieve helps keep you focused, but it will still allow you to change course along the way if you need to. After all, you can only plan your route if you know your destination.

Our plan was to write great games

In 1986 we decided to turn our hobby into a business. We'd already had several games published, but few had made much money. Our goal was to earn more money than our father during our gap year, so we wouldn't need to go to university and could carry on writing computer games. Back then there weren't any university courses related to games or even computer graphics.

We signed up to the government's Enterprise Allowance Scheme, which would pay us £70 a week for the first year but came with some strings attached. We'd have to attend college classes once a week to learn how to run a business. We attended sceptically, wondering what they could teach us, given that they knew nothing about games. In fact, it turned out they knew nothing about computers either.

"If all you want to do is make games then we'd recommend working in a full-time job at an established game studio"

Double-entry bookkeeping was relevant for recording our expenses and (hopefully) invoices, but the modules on writing a business plan (including cash flow forecast) seemed fairly pointless. There weren't any frames of reference for our business, and the cash flow seemed a work of fantasy since sales were impossible to predict.

We did as we were asked, however, and soon realised that, unlike school work, there were no right and wrong answers, and it was useful to make sure we'd considered everything. We made some reasonably educated forecasts and it turned out to be an extremely useful exercise. We still have the plan -- it's not great, but it makes for fun and nostalgic reading. We even made a six month update to reflect on how things had panned out.

A plan is better than no plan

If you are serious about starting your own studio then you need a business plan. It's going to take work to prepare, but nothing compared to the work you'll put in afterwards running a business and writing games. It will help you discuss, in a structured way, all the things you need to think about. Very quickly you'll realise that there's a lot of work that isn't making the game, but that's what it means to be an indie developer. If all you want to do is make games then we'd recommend working in a full-time job at an established game studio. You'll learn a great deal through being in the industry, and if you start a business later it's more likely to succeed.

Have a plan and write it down

Remember there are no right and wrong answers. You are just capturing all the key information and your plans and predictions. You're not aiming for a literary prize -- keep everything clear and concise, date every document, title it and add the authors' and contributors' names.

Your business name should be unique and reflect the personality you wish to project short-, medium- and long-term. We've seen some bizarre names that might be appropriate during the start-up phase, but wouldn't work if you have the success you are aiming for. Google your proposed name to ensure it isn't too close to someone else's name, especially if they are trading in a similar industry. Secure the domain with the .com if possible. Failing that, go for .co.uk, or .net, or even .tv or .games, so long as the company that has the .com is not in any business close to games.

Start with the overall vision of the business, keeping it concise and timeless. Perhaps include a mission statement. It's not written in stone, and can be updated later if your business pivots. Describe your background, why you're doing this, the people involved, the team's experience and the skills they each bring to the venture. Agree who is responsible for each area of the business.

Include a SWOT analysis to identify your strengths and weaknesses, the opportunities open to you and the threats you face.

Things to be clear on

Not all of the following will appear in the business plan, but it's important to be clear and make a record of these points, either in the plan or in Board Minutes:

Recognise what each founder brings in terms of money, equipment and intellectual property, and whether these are loaned or given.

Agree what ownership each person has of the business and what remuneration they will receive. Agree how any remuneration changes are to be agreed down the line, and what happens if someone wants to leave. Having this discussion at this point takes the emotion out if it actually happens, and ensures a fair resolution. You should also consider and decide how you would approach the situation if one of your team members is not pulling their weight, for whatever reason.

"Work out how you will vote on major decisions, and what actually constitutes a major decision"

It's a good idea to also work out how you will vote on major decisions, and what actually constitutes a major decision. We'd suggest it's any commitment that could amount to a cost or income in excess of £10,000, but it's whatever is right for you. The default in the case of a limited company is that voting is proportional to share holdings.

Company structure

Is this going to be a sole trader business, a partnership, or limited company? It's usually advisable to start as a limited company. While this carries some set-up costs, it has several legal advantages and will allow you to take seed investment and (if you're in the UK and qualify) you can claim Video Games Tax Relief (VGTR). Whatever you decide you will need a separate bank account, and you'll need to agree what authorities are required for withdrawing money.

It's good practice to sign up an accountant and lawyer (solicitor) at the beginning. Most practices have fair rates for start-ups and can provide useful advice in many areas. It's ideal if they've previously worked with games companies as they will understand your business better. You will need to collect and record all receipts in a software package like Xero or Quickbooks -- the accountant you choose will likely have a preference.

Clear business goals

Your business plan should include goals for the short-term (less than three months), medium-term (within the first year), and the long-term (either three or five years). Allow for some flexibility; for example, after two projects you may want to consider self-publishing. Record the alternatives; they are not commitments, just a record of thoughts you had when setting up the business.

Cash flow is king

Include a cash flow forecast for at least one year. Use a spreadsheet with months across the top and categories down the left side.

"As you develop your business and games you'll find things change, and that's absolutely fine"

The top section is traditionally income rows and should include sales and royalties broken out per game, with a miscellaneous 'other' row for income unrelated to specific games -- for example, selling old equipment. Predicting sales of games you've not yet made will be tough, but it's important to attempt it. This will force you to discuss your predictions and targets. We'd suggest you err on the pessimistic side.

The next section should cover all your anticipated costs, including salaries/remuneration, contractors, taxes and pensions. These will probably be zero until you predict there will be enough income to cover them. If you are taking on office space, add in rent and associated utilities. Other expenses include PR and marketing, hardware (PCs, dev kits, servers etc), software (tools/engine), insurance, repairs, travel, accommodation, event costs, subscriptions, memberships and consumables (paper, ink, batteries, coffee, milk, etc), legal, financial and bank costs. If you plan on taking on staff it's useful to break out recruitment costs too. Record Share Capital introduced and any director or other loans.

The most important thing to keep track of is the projected bank balance. And you really don't want this dipping into the red, which will almost certainly require cash injections early in the life of the business. Cash flow is vitally important for a business of any description. Even if you can predict correctly that your earning will exceed your costs, the timing of the money can cause serious issues.

The main reason indie developers often start out using publishers is to provide cash for development and take care of PR, marketing, localisation, QA and submissions. This is useful for the expertise they bring as well as finances.

Seek advice

Show your plan and cash flow forecast to people whose opinion you trust and respect and take their feedback. A non-exec director with serious business experience can be useful to advise also, although obviously the final decisions are yours. It's your business.

"No plan survives first contact with the enemy"

As you develop your business and games you'll find things change, and that's absolutely fine. It's a good idea to update your plan every three months. Reflect on what you've done against what you planned to do, update the numbers and adjust your strategy and plans going forward.

Hopefully in a few years' time you too will look back on this early business plan and see how it set the course for your successful business.

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Introduction

Are you ready to transform your passion for gaming into a thriving business venture? Crafting a comprehensive business plan for a video game studio is the crucial first step towards turning your creative ideas into profitable realities. In this guide, we’ll walk you through the essential elements of drafting a compelling Business plan for a video game studio . From understanding market trends to mapping out revenue streams, we’ll provide you with the tools and strategies you need to navigate the competitive landscape of the gaming industry. Whether you’re a seasoned developer or a newcomer to the scene, mastering the art of business planning is essential for success in the dynamic world of video game production. So, let’s dive in and explore how you can create a roadmap for your video game studio’s future success. Business plan for a video game studio? Get ready to unlock the potential of your gaming aspirations.

Understanding the Market

Before delving into the intricacies of your business plan, it’s crucial to gain a deep understanding of the gaming market. Analyze industry trends, consumer preferences, and competitor strategies. Identify target demographics, gaming platforms, and genres that align with your studio’s vision. Conduct thorough market research to unearth valuable insights that will inform your business decisions.

Defining Your Studio’s Vision and Mission

Every successful business begins with a clear vision and mission statement. Define what sets your video game studio apart from the competition. Articulate your long-term goals, creative aspirations, and commitment to innovation. Your vision and mission should resonate with both stakeholders and consumers, serving as a guiding light throughout your entrepreneurial journey.

Crafting a Compelling Value Proposition

A compelling value proposition is essential for attracting investors, partners, and players alike. Clearly articulate the unique benefits and experiences your games offer to players. Whether it’s groundbreaking gameplay mechanics, captivating storytelling, or immersive virtual worlds, highlight what makes your studio’s creations irresistible to gamers.

Formulating a Strategic Business Model

Your business model outlines how your video game studio intends to generate revenue and sustain profitability. Consider various monetization strategies, such as upfront game sales, in-game purchases, subscriptions, or advertising. Evaluate the pros and cons of each model in relation to your target audience and game portfolio. Additionally, explore opportunities for partnerships, licensing deals, and merchandising to diversify your revenue streams.

Developing a Comprehensive Marketing Plan

A robust marketing plan is essential for raising awareness and driving engagement with your games. Identify key marketing channels, including social media, influencer partnerships, press coverage, and community engagement platforms. Tailor your marketing strategies to resonate with your target audience, leveraging captivating visuals, compelling storytelling, and interactive experiences to captivate players’ attention.

Building a Talented Team

Behind every successful video game studio is a talented team of creative professionals. Assemble a diverse team with expertise in game design , programming , art , sound design , and marketing . Foster a collaborative and inclusive work environment that encourages innovation, creativity, and continuous learning. Invest in professional development opportunities and prioritize employee well-being to nurture a motivated and high-performing team.

Financial Planning and Projections

Financial planning is a critical aspect of your business plan, providing a roadmap for managing expenses, generating revenue, and achieving profitability. Develop detailed financial projections, including revenue forecasts, cost estimates, and cash flow analysis. Consider factors such as development costs, marketing expenses, distribution fees, and overheads when projecting your financial performance. Additionally, outline your funding requirements and explore potential sources of capital, such as venture capital, crowdfunding, or grants.

Risk Assessment and Contingency Planning

No business plan is complete without a thorough risk assessment and contingency plan. Identify potential risks and challenges that could impact your studio’s operations, such as market volatility, technical issues, or regulatory changes. Develop proactive strategies to mitigate these risks, whether through diversification, insurance, or strategic partnerships. Establish clear protocols for crisis management and adaptability to navigate unforeseen challenges with resilience and agility.

Top Online Education Platforms to Learn How to Write a Business Plan for a Video Game Studio

Mastering the art of writing a business plan for a video game studio is a crucial step towards realizing your entrepreneurial ambitions in the gaming industry. By leveraging the diverse range of online education platforms available, you can acquire the knowledge, skills, and confidence needed to develop a compelling business strategy that sets your gaming venture on the path to success.

Udemy stands as a prominent hub for online courses across various domains, including game development and entrepreneurship. Here, you can find courses specifically dedicated to crafting business plans for video game studios. These courses often feature comprehensive modules covering topics such as market analysis, revenue projections, and strategic planning. With Udemy’s user-friendly interface and affordable pricing, you can embark on your learning journey at your own pace without breaking the bank.

Coursera offers a wide array of courses curated by top universities and industry experts. When it comes to business planning for video game studios, Coursera provides courses that delve deep into the intricacies of creating a robust business strategy. From understanding the gaming market to drafting financial forecasts, these courses equip you with the knowledge and tools necessary to formulate a compelling business plan. Moreover, Coursera’s certification programs add credibility to your skill set, enhancing your profile in the competitive gaming industry.

LinkedIn Learning

LinkedIn Learning, with its vast library of courses, is an invaluable resource for professionals seeking to bolster their expertise. Here, you can find courses authored by industry veterans who offer practical insights into developing business plans tailored specifically for video game studios. These courses often feature real-world case studies and interactive exercises, allowing you to apply theoretical knowledge to practical scenarios. Furthermore, LinkedIn Learning’s integration with the professional networking platform empowers you to showcase your newfound skills to potential employers or collaborators within the gaming industry.

FutureLearn

FutureLearn, known for its innovative approach to online education, features courses developed in collaboration with leading universities and industry partners. Here, you can enroll in courses that provide a comprehensive overview of business planning for video game studios, covering essential aspects such as market research, financial modeling, and risk assessment. What sets FutureLearn apart is its emphasis on peer-to-peer learning and discussion forums, enabling you to engage with fellow learners and gain valuable insights from diverse perspectives. Moreover, FutureLearn’s flexible learning schedule accommodates your busy lifestyle, ensuring that you can pursue your entrepreneurial aspirations without compromising on other commitments.

Skillshare fosters a creative and collaborative learning environment, making it an ideal platform for aspiring game developers and entrepreneurs. With courses focusing on business planning for video game studios, Skillshare offers a hands-on approach to learning. From brainstorming game concepts to drafting executive summaries, these courses encourage active participation and foster a sense of community among learners. Additionally, Skillshare’s subscription-based model grants you access to a plethora of courses across various disciplines, allowing you to explore additional topics relevant to your entrepreneurial journey.

Top 10 Questions and Answers About How to Write a Business Plan for a Video Game Studio

1. What are the key components of a business plan for a video game studio?

A comprehensive business plan for a video game studio typically includes sections such as an executive summary, company overview, market analysis, marketing and sales strategy, product development plan, operational plan, management team, and financial projections.

2. How do I define my target audience in a video game business plan?

Identifying your target audience is crucial for effective marketing and product development. Conduct market research to understand the demographics, psychographics, and preferences of your potential players. Tailor your game concept and marketing strategies to cater to their needs and preferences.

3. What should I include in the market analysis section of my video game studio business plan?

In the market analysis section, analyze the gaming industry landscape, including market size, growth trends, key competitors, target market segments, and emerging opportunities. Evaluate the demand for your game genre, potential distribution channels, and pricing strategies.

4. How do I outline my marketing and sales strategy for a video game studio?

Outline your marketing and sales strategy by defining your unique selling proposition, promotional tactics, distribution channels, pricing model, and sales forecasts. Utilize a mix of online and offline marketing channels, including social media, influencer partnerships, press releases, and community engagement to maximize reach and visibility.

5. What are the essential elements of a product development plan for a video game studio?

A product development plan should outline your game concept, development milestones, production timeline, budget allocation, technology stack, quality assurance processes, and post-launch support strategies. Emphasize innovation, gameplay mechanics, graphics, storytelling, and user experience to create a compelling game.

6. How do I calculate the financial projections for my video game studio?

Estimate your revenue projections based on factors such as game sales, in-game purchases, subscription fees, advertising revenue, and licensing agreements. Calculate your expenses, including development costs, marketing expenses, operational overheads, and personnel salaries. Use financial modeling techniques to forecast cash flows, profitability, and return on investment.

7. What risks should I address in my video game studio business plan?

Identify potential risks and challenges that may impact your business, such as market competition, technology disruptions, funding constraints, regulatory issues, intellectual property risks, and talent acquisition challenges. Develop contingency plans and risk mitigation strategies to address these challenges effectively.

8. How do I showcase the expertise of my management team in a video game business plan?

Highlight the qualifications, experience, and achievements of your management team, including key personnel such as founders, executives, developers, designers, marketers, and advisors. Emphasize their industry expertise, track record of success, and their contributions to the studio’s growth and innovation.

9. Should I include a SWOT analysis in my video game studio business plan?

Yes, conducting a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis can provide valuable insights into your studio’s internal capabilities and external environment. Identify your strengths in game development, unique value proposition, market opportunities, potential weaknesses in your business model or operations, and external threats such as competition or market saturation.

10. How often should I update my video game studio business plan?

Your business plan should be a dynamic document that evolves with your studio’s growth and changes in the gaming industry landscape. Regularly review and update your business plan annually or as needed to reflect new market trends, strategic priorities, financial projections, and operational milestones.

Crafting a business plan for your video game studio is a foundational step towards building a sustainable and successful business in the gaming industry. By addressing the top 10 most searched questions, you’ll gain valuable insights and guidance to create a roadmap for achieving your goals, attracting investors, and turning your passion for gaming into a thriving business venture.

In conclusion, mastering the art of writing a comprehensive business plan for a video game studio is essential for aspiring developers and seasoned entrepreneurs alike. By following the steps outlined in this guide, you can create a roadmap that not only outlines your vision but also provides a strategic framework for achieving your goals. Remember, a well-crafted business plan for a video game studio lays the foundation for success in the competitive gaming industry. Whether you’re seeking funding, attracting partners, or simply guiding your own efforts, a solid business plan serves as a blueprint for your studio’s future endeavors. So, take the time to refine your strategy, conduct thorough market research, and articulate your unique value proposition. With dedication and perseverance, your video game studio can thrive in an ever-evolving landscape. Business plan for a video game studio? It’s not just a document; it’s a roadmap to your gaming dreams.

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• 3 April, 2024

Starting a Game Development Business

Before diving into the world of game development, it’s essential to have a solid foundation for your business. This section will provide an overview of the game development industry, explore revenue models commonly used in game development, and highlight the importance of conducting a competitive analysis.

Overview of the Game Development Industry

The game development industry is a thriving sector within the entertainment business, with a market value of $176 billion in 2021 ( LinkedIn ). It encompasses various aspects, including game design, programming, art, sound design, and quality assurance. The industry caters to a diverse audience of gamers, spanning different age groups and interests.

Game development offers immense opportunities for creative expression and innovation. Developers have the chance to bring imaginative worlds to life and create immersive experiences that captivate players. However, it’s essential to understand the competitive nature of the industry and stay up-to-date with the latest trends and technologies to succeed.

Revenue Models in Game Development

The gaming industry employs various revenue models to generate income. The choice of revenue model depends on factors such as the type of game, platform, target audience, and business strategies adopted by developers and publishers ( LinkedIn ). Some common revenue models in game development include:

Understanding these revenue models can help you strategize and determine the most suitable approach for your game development business.

Conducting a Competitive Analysis

A competitive analysis is a crucial step in the game development process. It involves examining the strengths and weaknesses of existing games in the market and identifying opportunities to differentiate your game ( Ben CIN Studios ). By conducting a competitive analysis, you can gain valuable insights into the market landscape, target audience preferences, and potential competitors.

When conducting a competitive analysis in game development, consider the following key components:

• Price point: Analyze the pricing strategies of similar games to determine an appropriate price point for your game.
• Genre breakdown: Explore the different genres within the game industry and identify the most relevant genre for your game.
• Target audience: Analyze the demographics, preferences, and characteristics of potential players to understand your target audience better.
• Competitors: Identify existing games that offer similar gameplay, themes, or features to assess the competition.
• Key advantages and disadvantages: Evaluate the strengths and weaknesses of competing games to identify areas where your game can excel.
• Marketing strategy: Study the marketing tactics employed by successful games to gain inspiration for your own marketing efforts.

By conducting a comprehensive competitive analysis, you can refine your game development strategy, create a unique game that stands out in the market, and better understand your target audience.

In the next section, we will delve into the process of creating a game development business plan, which will serve as a roadmap for your success in the industry.

Creating a Game Development Business Plan

When starting a game development business, having a well-crafted business plan is essential for setting goals and outlining a clear path to achieve them. A business plan provides a comprehensive overview of the company, team, resources, finances, marketing strategies, player community, operations, and development processes ( Source ). Let’s explore the key components of a game development business plan, including the importance of a business plan, market analysis, and target audience research.

Importance of a Business Plan

A business plan serves as a valuable tool for a game development studio as it navigates the growth of its business. It showcases not only the game(s) but also the vision and drive of the studio, demonstrating a solid understanding of the industry and market, as well as the necessary skills and resources to achieve goals.

By outlining the objectives, strategies, and financial projections, a business plan provides a roadmap for success. It helps attract investors, secure funding, and make informed decisions throughout the game development process. A well-crafted business plan sets the foundation for a successful game development venture.

Key Components of a Business Plan

A comprehensive game development business plan includes several key components. These components ensure that all aspects of the business are considered and effectively communicated. Here are some essential components to include:

Executive Summary : This section provides an overview of the company, its mission, and the main goals of the business plan.

Company Description : Describe the game development studio, its history, and its unique selling proposition. Highlight the strengths and expertise of the team members and their experience in the industry.

Market Analysis : Conduct a thorough analysis of the video game industry, including market size, trends, and key players. Identify any significant shifts or opportunities that may impact the game(s) and target customers ( Source ). For more information on conducting market analysis, refer to our game development business model article.

Target Audience Research : Before launching a game, it’s important to make an educated guess about the target audience in order to effectively market the game. Define the demographics (age, gender) and interests (game genres, mechanics) of the target audience. This information will guide marketing efforts and help tailor the game to meet the needs and preferences of the target audience ( Game Developer ).

Revenue Models : Determine the revenue models that will be used in the game development business, such as in-app purchases, subscriptions, or advertising. Analyze the potential revenue streams and outline the pricing strategies that will be implemented.

Marketing Strategies : Develop a comprehensive marketing plan for promoting the game(s). Include strategies for leveraging social media, building an online presence, and collaborating with influencers. For more information on marketing strategies for game development, refer to our game development startup guide article.

Remember to include relevant data, statistics, and research to support your analysis and assumptions. In-depth market research and a solid understanding of the target audience will help lay the groundwork for a successful game development business.

By carefully crafting each component of the business plan, game developers can present a clear vision, demonstrate market knowledge, and outline strategies for success. This blueprint will not only guide the game development process but also attract potential investors and partners who share the same passion for gaming.

Marketing Strategies for Game Development

When it comes to game development, having a solid marketing strategy is essential for the success of your game. In this section, we will explore various marketing strategies that can help you effectively promote your game and reach your target audience.

Game Marketing Overview

Game marketing is a multifaceted process that involves various tactics and channels to create awareness and generate interest in your game. It encompasses everything from pre-launch hype to post-launch promotion. By implementing the right marketing strategies, you can attract genuine traffic and increase the number of users for your game.

Top Game Marketing Strategies

To ensure the success of your mobile gaming application, it’s important to utilize proven marketing strategies. According to Logic Simplified , some of the top game marketing strategies include:

• Social Media Marketing : Promote your game on popular social media platforms like Facebook, Instagram, and Twitter. Engage with your audience, share updates, and create a community around your game.
• Press Releases : Distribute online news regarding the release of your game through press releases. This can help generate buzz and attract the attention of journalists and bloggers.
• Niche Gaming Websites : Promote your game on niche gaming websites that cater to your target audience. This can help you reach gamers who are specifically interested in your game genre or mechanics.
• Video Marketing : Utilize video marketing on platforms like YouTube to showcase gameplay footage, trailers, and tutorials. Video content can be highly engaging and can help potential players get a better understanding of your game.
• Presentations and Slideshows : Present your game on popular PPT sharing sites to reach a wider audience. This can be an effective way to showcase your game’s features and attract potential players.
• Forums and Blogging : Engage in discussions related to gaming applications on forums and participate in gaming communities. Blog about your game on relevant blog sites to create awareness and generate interest.
• Display Advertising : Utilize display advertising on game advertising platforms to reach your target audience. Display ads can be strategically placed to attract the attention of potential players.
• Email Marketing : Start an email marketing campaign for your game to stay connected with your audience. Send updates, exclusive content, and offers to keep players engaged and encourage them to continue playing.
• Social Media Integration : Integrate your game with social media platforms to allow players to share their achievements, progress, and invite friends to play. This can help increase visibility and attract new players.

Leveraging Social Media and Influencers

One of the most effective ways to promote your game is by leveraging social media and influencers. Social media platforms provide an opportunity to connect directly with your audience, share updates, and build excitement around your game. Engage with your followers, respond to their comments and questions, and encourage them to share their experiences with your game.

Influencers, especially those who specialize in gaming content, can have a significant impact on promoting your game to their followers. Collaborating with influencers can help you reach a wider audience and generate buzz around your game. Consider partnering with influencers who align with your game’s genre and target audience to maximize the impact of your marketing efforts.

Building an Online Presence

Creating a strong online presence is crucial for game developers. This includes having a well-designed website or landing page that provides information about your game, screenshots, trailers, and links to download or purchase the game. Optimize your website for search engines to improve its visibility and reach more potential players.

Additionally, consider utilizing other online platforms such as game-specific forums, gaming communities, and review websites to promote your game. Engage with the community, share updates, and respond to feedback to build a positive reputation and attract more players.

Cross-Promotion and Collaboration

Cross-promotion and collaboration with other game developers or influencers in the gaming industry can be a powerful marketing strategy. By partnering with complementary games or influencers, you can reach their audience and vice versa, expanding your reach and attracting new players.

Collaborative marketing efforts can include joint social media campaigns, giveaways, or even creating a bundle of games to be sold together. These partnerships can mutually benefit all parties involved and help increase exposure for your game.

By implementing these marketing strategies, you can effectively promote your game, attract a larger audience, and increase the chances of success in the competitive game development industry. Remember to conduct market research, define your target audience, and tailor your marketing efforts to reach the right players for your game.

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Business Plan Template for Video Game

• Great for beginners
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Starting your own video game business is an exciting adventure, but it requires careful planning and strategy to ensure success. That's where ClickUp's Business Plan Template for Video Games comes in!

Our template is specifically designed for video game developers and entrepreneurs, helping you outline your vision, strategy, market analysis, financial projections, and operational details. With this template, you can secure funding, guide the development process, and launch your video game with confidence.

Here's how ClickUp's Business Plan Template for Video Games can help you:

• Define your vision and set clear goals for your video game business
• Conduct a thorough market analysis to understand your target audience and competition
• Create detailed financial projections to attract investors and manage your budget effectively
• Outline operational details, including team roles and responsibilities, development milestones, and marketing strategies

Don't let your video game business idea remain a fantasy. Use ClickUp's Business Plan Template for Video Games to turn it into a reality!

Business Plan Template for Video Game Benefits

A business plan template for video games is an essential tool for video game developers and entrepreneurs looking to start their own video game business. Here are some of the benefits of using a business plan template:

• Provides a clear roadmap for launching and running a successful video game business
• Helps secure funding by showcasing the market potential, financial projections, and growth opportunities
• Guides strategic decision-making by outlining the vision, mission, and goals of the video game business
• Assists in conducting thorough market analysis to identify target audience, competition, and trends
• Enables effective resource allocation and budgeting for the development and marketing of the video game
• Streamlines operational processes and identifies key milestones for the successful launch and ongoing management of the video game business.

Main Elements of Video Game Business Plan Template

To create a comprehensive and organized business plan for your video game venture, ClickUp’s Business Plan Template for Video Game offers the following key elements:

• Custom Statuses: Track the progress of different sections of your business plan using statuses such as Complete, In Progress, Needs Revision, and To Do, ensuring that every aspect is accounted for and easily manageable.
• Custom Fields: Utilize custom fields like Reference, Approved, and Section to add specific details and information to each section of your business plan, keeping everything organized and easily accessible.
• Custom Views: Choose from five different views such as Topics, Status, Timeline, Business Plan, and Getting Started Guide to visualize and navigate through your business plan in a way that suits your needs and preferences, ensuring a clear overview of your video game business's roadmap and progress.
• Collaboration: Collaborate with your team members in real-time, assign tasks, set due dates, and leave comments on specific sections, ensuring seamless teamwork and progress tracking.

With ClickUp’s Business Plan Template for Video Game, you can confidently outline your video game business's strategy, secure funding, and navigate the development and launch of your exciting new video game.

How To Use Business Plan Template for Video Game

Creating a business plan for a video game can be a complex task, but with the help of ClickUp's Business Plan Template, you can simplify the process. Follow these 6 steps to effectively use the template and develop a comprehensive business plan for your video game:

1. Define your vision and mission

Start by clearly defining your vision and mission for the video game. What is the purpose of the game? Who is your target audience? What unique features or gameplay mechanics will set your game apart? By answering these questions, you'll lay the foundation for your business plan.

Use the Docs feature in ClickUp to outline your vision and mission statement.

2. Conduct market research

Research is key to understanding the video game industry and identifying potential opportunities and challenges. Analyze the target market, competition, and current trends. Identify gaps in the market that your game can fill and determine how you can position your game for success.

Utilize the Goals feature in ClickUp to set specific objectives for your market research.

3. Develop a marketing and sales strategy

Outline your marketing and sales strategy to promote and sell your video game. Identify the channels and platforms you'll use to reach your target audience, such as social media, influencers, or digital advertising. Determine pricing strategies, distribution methods, and any partnerships or collaborations that can help boost your game's visibility.

Visualize your marketing and sales strategy using the Gantt chart feature in ClickUp .

4. Create a financial plan

Develop a comprehensive financial plan that includes projected revenue, expenses, and funding sources. Calculate the costs of game development, marketing, distribution, and ongoing maintenance. Determine how you will monetize your game, whether through upfront purchases, in-app purchases, or subscriptions.

Use the Table view in ClickUp to create a detailed financial projection for your video game.

5. Outline the development process

Provide a detailed roadmap of the game development process, including key milestones, timelines, and team responsibilities. Break down the development tasks into manageable chunks and assign them to the appropriate team members. Consider using Agile methodologies, such as sprints or iterations, to ensure efficient and timely development.

Track the development process using ClickUp's Board view, where you can create tasks, assign them to team members, and monitor progress.

6. Set performance metrics and milestones

Establish performance metrics and milestones to measure the success of your video game and track progress. Define key performance indicators (KPIs) such as user acquisition, retention, revenue, and player satisfaction. Set specific milestones and deadlines to keep your team accountable and ensure that you're on track to achieving your goals.

Visualize your performance metrics and milestones using ClickUp's Dashboards feature, where you can create customized charts and graphs.

By following these 6 steps and utilizing ClickUp's Business Plan Template, you'll be well-equipped to create a comprehensive and effective business plan for your video game.

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

Video game developers and entrepreneurs can use the Business Plan Template for Video Games in ClickUp to create a comprehensive plan for their video game business.

To get started, 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 organize your plan into different sections, such as Vision, Strategy, Market Analysis, Financial Projections, and Operational Details
• The Status View will help you track the progress of each section, with statuses like Complete, In Progress, Needs Revision, and To Do
• The Timeline View will give you a visual representation of your plan's milestones and deadlines
• Use the Business Plan View to see an overview of your entire plan in one place, with all the sections and their statuses
• The Getting Started Guide View will provide you with a step-by-step guide on how to use this template effectively
• Customize the template by adding custom fields like Reference, Approved, and Section to provide additional information and track important details
• Update the statuses as you work on each section to keep team members informed of progress
• Monitor and analyze your plan to ensure it aligns with your goals and objectives
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Creating a Winning Business Model and Competitive Analysis for Your Indie Game

• Last Modified: February 7, 2023

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In this guide, I’ll propose you a way of how to develop a strong business model, conduct a competitive analysis, and combine the insights from both to develop a solid strategy for your indie game studio. Whether you’re seeking investment or competing in a pitch competition, a well-developed business model and competitive analysis will give you a strong foundation for success.

Understanding the Business Model

Understanding your business model is crucial for the success of your game. A business model is the blueprint for how your game will generate revenue and profits. It outlines your value proposition, target customer, revenue streams, and cost structure. 

Your game value proposition is the unique benefit or solution that your game offers to your target customer. In the gaming industry, this could be a unique gameplay experience, a specific genre or theme, or a particular feature that sets your game apart from others. Understanding your value proposition is essential for creating a strong marketing message and positioning your game in the market.

Note: The term “value proposition” is often used in the context of developing a business model, while the term “unique selling point” (USP) is more commonly used in the context of marketing and sales.

Next, you’ll need to identify your target customer . This includes understanding the demographic and psychographic characteristics of the gamers who will be most interested in your game. Knowing your target customer will help you develop a marketing strategy that resonates with them and makes it easier to reach them.

Some popular revenue streams include pay-to-play (one-time purchase), in-game purchases, subscriptions, and advertising. It’s important to consider which revenue streams will be most effective for your game and how they will impact your cost structure.

Your cost structure includes the costs of developing, marketing, and distributing your game. Development costs include the cost of creating the game, while marketing costs include the cost of promoting it. Platform fees are the costs associated with distributing your game on different platforms. Understanding your cost structure will help you create realistic financial projections and determine your investment needs.

When developing your business model, it’s important to consider how you will price and monetize your game to maximize revenue. It’s also essential to consider different platforms and their revenue potential. As the market and competition evolves, it’s important to adapt your business model accordingly. This may involve testing and iteration to find the best approach.

Now, I suggest to take in note the terms value proposition, target customer, revenue streams, and cost structure, and find/determine your own ones. Usually, one or two sentences for each should be enough.

Conducting a Competitive Analysis

Before launching your indie game, it’s important to conduct a competitive analysis to understand the market and the competition. A competitive analysis allows you to identify the strengths and weaknesses of your competitors, as well as opportunities for your own game.

Using VGInsights , you can conduct a thorough competitive analysis for your indie game. Here is a step-by-step guide on how to do it:

Step 1 : Conduct initial research on the market as a whole for your specific genre and size using VGInsights. This will give you an overview of the market size, trends, and potential target audience.

Step 2 : Identify 4-5 recent competitor games in the same genre and size as your game. Analyze their gameplay mechanics and their unique selling proposition (what makes each of them unique?).

Step 3 : Conduct a detailed analysis for each competitor game using VGInsights or a similar platform. It should include the game duration, price, reception/rating, marketing strategy, languages, and platforms.

Step 4 : Analyze revenue for each game and compare it with your projected revenue to get a better understanding of the market potential.

Step 5 : Based on all the information gathered, explain what is your game’s unique value proposition. Highlight the unique features and gameplay mechanics that set your game apart from the competition.

By conducting a competitive analysis, you can create a sales projection for your game that is based on realistic market data. This will help you determine your investment needs and make informed decisions about your game’s development, marketing, and distribution. Remember that, it’s important to keep your competitive analysis up to date as the market and competition evolves.

Combining Business Model and Competitive Analysis

The insights gained from your business model and competitive analysis will help you to create your game’s pitch deck . This deck should showcase your game’s unique value proposition, target customer, revenue streams, and projected sales, as well as the market size, trends, and competition. A pitch deck is a crucial tool for communicating your game’s potential to investors and other stakeholders.

The combination of your business model and competitive analysis also forms the foundation of your business plan. A business plan is a comprehensive document that outlines your overall strategy, goals, and how you plan to achieve them. By including the insights from your business model and competitive analysis, you can create a plan that is based on realistic market data and positions your studio and your following games for success. However, a business plan is not always essential, especially for indie game developers launching their first game. In this case, I’d suggest going first with a pitch deck.

I hope this guide has provided you with the tools and information needed to develop a strong business model, conduct a competitive analysis, and create a solid strategy for your game launch and development. 

For a more in-depth look into complementary subject matter, I recommend reading “ Game Marketing Plan – Stand Out in a Crowded Marketplace. ” This article will assist you in constructing a comprehensive marketing plan, helping you to better grasp your target audience, competitors, and various marketing techniques.

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 Build a Game Plan: Business Plan for Video Game Development

By alex ryzhkov, get full bundle.

Are you ready to turn your passion for video games into a thriving business? In the fast-paced and ever-growing world of video game development, it's crucial to have a solid business plan in place. According to recent statistics, the global video game market is expected to reach a staggering $293.5 billion by 2027, with the North American market accounting for a significant portion of that revenue. With such immense potential for growth, now is the perfect time to start your own video game development company.

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Before diving headfirst into this exciting venture, it's essential to have a clear roadmap to success. Crafting a well-thought-out business plan will help you navigate the competitive industry and maximize your chances of success. In this blog post, we will guide you through nine crucial steps to create a comprehensive business plan for your video game development company.

So, let's get started with the first step: conducting market research. Understanding the current trends, consumer preferences, and potential market gaps is key to developing a winning strategy. By conducting thorough market research, you can identify lucrative opportunities and make informed decisions regarding your game development and marketing strategies.

Next, it's crucial to define your target audience and competition. Knowing who your ideal gamers are and understanding their demands and preferences will allow you to tailor your games to meet their expectations. Additionally, analyzing your competitors will help you identify your unique selling proposition, giving you a competitive edge in the market.

Once you've gathered all the necessary information, it's time to develop a comprehensive business plan outline. This document will serve as your roadmap, highlighting your goals, marketing strategies, and financial projections. It will also showcase your company's vision and mission, ensuring everyone involved is aligned towards a common objective.

When it comes to finances, determining your startup and ongoing costs is vital. From game development expenses to marketing budgets and overhead costs, having a clear understanding of your financial requirements will help you plan and manage your finances effectively. Creating a detailed financial forecast will also allow you to project your revenue and expenses, aiding in decision-making and attracting potential investors.

Funding options can make or break your video game development company. Exploring different avenues, such as loans, crowdfunding, or securing partnerships with publishers or console manufacturers, can provide the necessary financial resources and promotion opportunities to propel your business forward.

Establishing a legal structure and registering your company is essential for compliance and protection. Determining whether you'll operate as a sole proprietorship, partnership, or corporation and fulfilling all legal requirements will ensure your business is on solid ground.

Lastly, building a qualified team of professionals is crucial for bringing your game development dreams to life. Assembling a talented and diverse team of designers, developers, marketers, and project managers will contribute to the success of your company.

By following these nine steps, you'll be well-equipped to write a comprehensive business plan that will set the foundation for your video game development company. Let's embark on this exciting journey together and make your mark in the thriving video game industry!

Conduct Market Research

Conducting thorough market research is an essential step when starting a video game development company. This process provides valuable insights into the gaming industry, helps identify potential challenges and opportunities, and allows you to make informed decisions for your business.

Market research encompasses gathering and analyzing relevant data about the gaming market, including consumer preferences, trends, and competitor strategies. By understanding your target audience and their gaming habits, you can tailor your game development and marketing efforts to meet their needs.

• Analyze the gaming industry: Investigate the overall size and growth of the gaming industry in order to assess the potential demand for your video games. Consider factors such as market trends, consumer demographics, and popular game genres.
• Identify your target audience: Define the specific group of consumers you aim to attract with your video games. Determine their preferences, gaming platforms of choice, and spending habits to understand how to position your products in the market.
• Research competitors: Study existing video game development companies that operate in a similar genre or target the same audience. Analyze their strategies, strengths, and weaknesses to identify gaps in the market that your company can fill.
• Stay updated on industry trends: Keep a close eye on the latest developments, emerging technologies, and gaming trends. This will help you anticipate shifts in consumer preferences and adapt your business strategies accordingly.

Tips for conducting market research:

• Utilize online resources, industry reports, and market research publications to gather relevant data and insights.
• Engage in surveys or focus groups with potential gamers to understand their preferences and expectations.
• Attend gaming conferences, trade shows, and events to connect with industry professionals and stay updated on industry trends.
• Network with other game developers and industry experts to learn from their experiences and gain valuable advice.

Define Your Target Audience And Competition

Defining your target audience and understanding your competition are crucial steps in developing a successful business plan for a video game development company. By clearly identifying who your ideal customers are and analyzing your competitors, you can effectively tailor your products and marketing strategies to meet the needs and preferences of the market.

Identify your target audience: Start by determining the demographics, interests, and behaviors of the gamers who are most likely to enjoy and purchase your video games. Consider factors such as age, gender, location, gaming platforms preferences, and gaming habits. Conducting surveys, analyzing market data, and getting feedback from potential players can help you gain valuable insights.

• Segment your target audience based on different characteristics and preferences to better cater to their needs.
• Consider conducting focus groups or user testing sessions to gather feedback and refine your game concepts.

Research your competition: Thoroughly analyze the video game development companies that are already operating in your market. Identify their strengths, weaknesses, and unique selling propositions. Understanding your competition will allow you to differentiate your offerings and position your company effectively. Additionally, study their target audience and marketing strategies to gain insight into successful approaches.

• Visit industry-related forums, websites, and social media groups to stay updated on the latest trends and discussions within the gaming community.
• Conduct competitor analysis to identify gaps in the market that your company can fill.

By defining your target audience and analyzing your competition, you can develop a clear understanding of the needs and preferences of your potential customers. Armed with this information, you can create video games that resonate with your target audience and position your company as a competitive player in the industry.

Identify Your Unique Selling Proposition

Identifying and highlighting your unique selling proposition (USP) is crucial to the success of your video game development company. Your USP is what sets your games apart from the competition and gives consumers a reason to choose your products over others. It is the key factor that attracts and retains customers in a competitive market.

• Research the Market: Conduct thorough market research to understand the current trends, preferences, and demands of gamers. Analyze the strengths and weaknesses of existing games on the market to identify any gaps or untapped opportunities.
• Define Your Target Audience: Determine the specific group of gamers your games will target. Consider demographics, interests, and gaming preferences to tailor your products accordingly. Understanding your target audience will allow you to design games that cater to their interests and needs.
• Highlight Your Unique Features: Identify the unique features and gameplay mechanics that set your games apart from others. Whether it's innovative gameplay, stunning graphics, immersive storytelling, or cutting-edge technology, emphasize these aspects in your marketing materials to showcase your USP.
• Create a Compelling Value Proposition: Craft a clear and concise statement that communicates the unique value your games offer to consumers. This could be through delivering exceptional entertainment, providing a one-of-a-kind gaming experience, or offering a distinctive genre or theme that appeals to your target audience.

Tips for Identifying Your Unique Selling Proposition:

• Survey potential gamers to gather feedback on what they find appealing in video games and what they feel is missing in the market.
• Stay informed about the latest technological advancements and trends in the gaming industry to incorporate them into your USP.
• Continuously analyze your competition to differentiate your games from theirs and offer something fresh and innovative.
• Regularly reassess and refine your USP based on feedback from players and changes in the market.

Develop A Comprehensive Business Plan Outline

Developing a comprehensive business plan outline is a crucial step in successfully starting and managing a video game development company. This plan will serve as a roadmap for your company's growth and success, and will guide your decision-making process. Here are the key components to include in your business plan outline:

• Executive Summary: This section provides an overview of your company, its purpose, and its goals. It should outline the unique selling proposition and highlight the potential market opportunities you aim to capture.
• Company Description: Describe your video game development company's mission, vision, and values. Include information about your target audience, the type of games you plan to develop, and the platforms you will focus on.
• Market Analysis: Conduct thorough market research to understand the gaming industry, identify trends, and assess the competition. Analyze the target market, including demographics, preferences, and purchasing behavior.
• Organization and Management: Provide an overview of your company's organizational structure and introduce key team members and their roles. Include their qualifications and expertise.
• Product Line or Services: Detail the video games you plan to develop, including their genres, target platforms, unique features, and any planned downloadable content or expansion packs.
• Marketing and Sales Strategy: Outline your marketing and sales tactics to reach your target audience and promote your games effectively. Include your pricing strategy, distribution channels, and promotional activities.
• Financial Projections: Create detailed financial forecasts, including projected revenue, expenses, and profitability. Consider factors such as production costs, marketing expenses, and potential revenue streams from downloadable content and partnerships.
• Implementation Plan: Break down the steps required to bring your games to market. Include timelines, milestones, and the resources needed at each stage of development.
• Risk Assessment: Identify potential risks and challenges that may impact your business. Develop contingency plans to mitigate these risks and ensure the smooth operation of your video game development company.
• Keep the business plan concise and focused, highlighting the most important information. Investors and stakeholders appreciate clear and succinct plans.
• Regularly review and update your business plan to adapt to changes in the gaming industry and market conditions.
• Seek feedback from industry experts or mentors to ensure your business plan is comprehensive and realistic.

Determine The Startup And Ongoing Costs

One of the most critical aspects of writing a business plan for a video game development company is determining the startup and ongoing costs. This step is crucial for understanding the financial requirements and ensuring the sustainability of your business.

To determine the startup costs, you need to consider all the expenses involved in getting your company up and running. This includes costs such as:

• Equipment and technology: Determine the cost of purchasing or leasing computers, consoles, software, and any other necessary equipment.
• Office space: Calculate the expenses related to renting or buying office space, including rent, utilities, and maintenance.
• Salaries and wages: Determine the personnel you need to hire and their corresponding salaries and wages.
• Marketing and advertising: Consider the costs associated with promoting your games and reaching your target audience.
• Legal and professional services: Budget for legal fees, accounting services, and any other professional services required.
• Licenses and permits: Research the licenses and permits necessary to operate a video game development company and their associated costs.
• Research and development: Account for expenses related to game development, including software licenses, design tools, and other development resources.
• Consider both one-time expenses and recurring costs when determining your startup and ongoing costs.
• Create a detailed budget spreadsheet to estimate and track your expenditures.
• Get multiple quotes and compare prices for equipment, services, and office space to ensure you are getting the best value for your money.
• Include a contingency fund in your budget to account for unexpected expenses or delays.
• Keep in mind that ongoing costs will include expenses such as employee salaries, rent, marketing, and ongoing game development.

Determining the startup and ongoing costs will provide you with a clear understanding of the financial resources required to launch and sustain your video game development company. It will also help you define your funding needs and develop a comprehensive financial forecast for your business plan.

Create A Financial Forecast

Creating a financial forecast is a crucial step in the business planning process for a video game development company. It involves projecting the expected financial performance of your company over a specific period, typically three to five years. A well-prepared financial forecast will not only help you understand the financial viability of your business idea, but it will also assist you in securing funding from investors or lenders.

To create an effective financial forecast, you should start by estimating your revenue streams . Consider the different sources of income for your video games, such as game sales, downloadable content, and potential partnerships or licensing agreements. Analyze current market trends and consumer demand to make realistic revenue projections.

Next, you need to estimate your expenses . This includes the costs associated with game development, marketing, distribution, and ongoing operational expenses. Be sure to consider both one-time costs and recurring expenses to have a comprehensive understanding of your financial obligations.

Once you have estimated your revenue and expenses, you can create a financial statement that includes an income statement, balance sheet, and cash flow statement. These statements will help you assess the financial health of your business and provide a clear picture of its profitability, assets, liabilities, and cash flow.

Financial Forecast Tips:

• Be conservative in your revenue projections to avoid overestimating potential sales.
• Include contingency plans to address unexpected expenses or challenges that may arise.
• Regularly update and review your financial forecast as your business evolves.
• Consider seeking professional help from a financial advisor or accountant to ensure accuracy and reliability of your financial projections.

Explore Funding Options

Securing funding is an essential step in launching a successful video game development company. While self-funding is a viable option for some, exploring other funding options can provide the necessary resources to fuel growth and development. Here are some important funding options to consider:

• Bootstrapping: If you have personal savings or access to credit, bootstrapping your video game development company can be a viable option. This self-funding approach allows you to maintain full control over your business and retain profits.
• Angel Investors: Angel investors are individuals who provide financial support to startups in exchange for equity or a stake in the company. These investors often have industry experience and can provide valuable mentorship and connections in addition to funding.
• Venture Capital: Venture capital firms specialize in investing in high-potential startups. They typically provide larger sums of capital in exchange for an equity stake. However, venture capital funding often comes with the expectation of rapid growth and potential loss of control.
• Crowdfunding: Crowdfunding platforms, such as Kickstarter or Indiegogo, present an opportunity to raise funds from a large number of individuals who believe in your vision. It is important to create a compelling campaign that offers attractive rewards to incentivize backers.
• Loans and Grants: Traditional bank loans or grants from government agencies or non-profit organizations can provide valuable funding for your video game development company. Research and apply for loans or grants tailored to the gaming industry.
• Prepare a solid business plan and financial forecast to present to potential investors or lenders. It should clearly outline your video game development company's potential for success and profitability.
• Network and establish connections within the gaming industry to increase your chances of finding funding opportunities. Attend industry events and conferences to meet potential investors and industry professionals.
• Consider joining an incubator or accelerator program specifically designed for video game startups. These programs often provide access to funding, mentorship, and valuable resources.
• Be prepared to negotiate terms with potential investors or lenders. Seek legal advice to ensure you are making informed decisions and protecting your interests.

Define Your Company's Legal Structure And Register It

When starting a video game development company, defining your legal structure is an essential step to establish a solid foundation for your business. Different legal structures offer various options and benefits, so it's important to choose the one that best suits your needs.

1. Choose your legal structure:

• Sole Proprietorship: This structure offers simplicity and full control as an individual owner, but you are personally liable for the company's debts.
• Partnership: If you have one or more partners, a partnership structure allows you to share responsibilities, profits, and liabilities.
• Limited Liability Company (LLC): An LLC combines the benefits of a partnership and corporation. It provides liability protection while allowing flexibility in management and taxation.
• Corporation: A corporation offers limited liability protection to its owners (shareholders) and allows for potential growth by selling shares of stock.

2. Register your company:

After selecting a legal structure, you must register your video game development company with the appropriate authorities. This process varies depending on your location, so ensure you understand the specific requirements and paperwork involved.

Tips for Registering Your Company:

Consult with a Business Attorney:

Research licensing and permits:, protect your intellectual property:, consider a professional registered agent:.

By defining the legal structure for your video game development company and completing the necessary registrations, you demonstrate professionalism and establish a solid legal framework that protects your business and allows for potential growth.

Build A Qualified Team Of Professionals

Building a qualified team of professionals is crucial for the success of your video game development company. With a team of skilled individuals, you can ensure the creation of high-quality games that resonate with your target audience. Here are some important aspects to consider:

• Define the roles and responsibilities: Clearly outline the specific roles and responsibilities needed for your team. This may include game designers, programmers, artists, animators, sound engineers, and project managers.
• Seek experienced individuals: Look for professionals who have relevant experience in the gaming industry. Prioritize candidates who have worked on successful game projects and have a deep understanding of game development processes.
• Ensure a diverse skill set: It is important to have a team with a diverse skill set to cover all aspects of game development. This includes individuals with expertise in different programming languages, art styles, audio design, and storytelling.
• Promote teamwork and collaboration: Foster a collaborative environment where team members can work together effectively. Encourage open communication, brainstorming sessions, and regular team meetings to ensure everyone is aligned on project goals and objectives.
• Consider outsourcing: If you require specialized skills that are not available internally, consider outsourcing certain aspects of game development. This can help you access a wider talent pool and ensure the delivery of high-quality work.
• Provide ongoing training and development: Invest in continuous training and development programs to enhance the skills and knowledge of your team members. This can include attending industry conferences, participating in workshops, or providing access to online learning resources.
• Encourage creativity and innovation: Foster a culture that allows for creativity and innovation to thrive. Encourage your team members to think outside the box and explore new ideas in game development. This can lead to the creation of unique and captivating games.

Tips for Building a Qualified Team of Professionals:

• Clearly communicate your company's vision and goals to attract passionate individuals who align with your mission.
• Utilize online platforms and communities dedicated to game development to connect with potential team members.
• Consider conducting skill assessments or technical interviews to evaluate candidates' abilities and compatibility with your team.
• Regularly evaluate the performance of your team members and provide constructive feedback to foster growth and improvement.
• Network with industry professionals and attend gaming events to expand your connections and identify potential talent.

Writing a business plan for a video game development company is crucial for success in a competitive industry. By following these nine steps, you can ensure that your business is well-prepared and positioned for growth. Conduct market research to understand your target audience and competition, and identify your unique selling proposition to stand out. Develop a comprehensive business plan outline and determine the startup and ongoing costs, creating a financial forecast to guide your business decisions. Explore funding options and define your company's legal structure while building a qualified team of professionals to execute your vision.

• Step 1: Conduct market research
• Step 2: Define your target audience and competition
• Step 3: Identify your unique selling proposition
• Step 4: Develop a comprehensive business plan outline
• Step 5: Determine the startup and ongoing costs
• Step 6: Create a financial forecast
• Step 7: Explore funding options
• Step 8: Define your company's legal structure and register it
• Step 9: Build a qualified team of professionals

With the right business plan in place, video game development companies can capitalize on the lucrative pay-to-play model, as well as explore additional revenue streams like downloadable content and partnerships. By combining a strong understanding of the market, a solid financial plan, and a skilled team, your video game development company can thrive in this dynamic industry.

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Indie Game Studio Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Entertainment Sector

Do you want to start a game studio and need to write a plan? If YES, here is a sample indie game studio house business plan template & feasibility report.

If you are interested in the video games industry and you don’t have the capacity to attract and work with mainstream video games publishers, the good news is that you can still start a business in the industry. One of such businesses is to start an indie game studio.

Indie games are developed by individuals, small teams, or small independent companies that are often specifically formed for the development of one specific game. Typically, indie games are smaller than mainstream titles.

Although you might not make a lot of money like mainstream video games publishing companies, but trust me, with the advent of social networking sites, there are loads of opportunities for you to make good money from this line of business. Below is a sample indie game studio business plan template that will help you write yours within record time.

A Sample Indie Game Studio Business Plan Template

1. industry overview.

In the video game industry, an independent (indie) game refers to games created by individuals or smaller development teams (small teams of video game developers) without the significant financial support of a video game publisher or other outside source.

Indie games studio is grouped under the social network game development industry a sub industry under the video games industry. Companies in this industry develop video games played on a social network platforms, including websites such as Facebook and smartphone applications.

The games developed within this industry are free to play and do not require the user to own any software or console to participate. Companies earn revenue through the sale of virtual goods within a game as well as through advertisements.

Since its inception, the Social Network Game Development industry has grown rapidly. Revenue is anticipated to grow at an annualized rate of 16.7 percent to $3.9 billion over the five years to 2018. The surging adoption of the internet and the popularity of social networks, including social networking websites and mobile apps, have driven revenue growth during the period. Industry revenue is anticipated to rise 14.3 percent in 2018 alone.

The industry’s growth has been stimulated by the emergence of new markets that have embraced social gaming. Social networks and their accompanying technology have placed gaming within reach of the average computer or mobile phone user.

As a result, consumers who have not previously played video games are beginning to participate According to a report published by IBISWorld, the Video Games industry has experienced strong returns to spending on industry products during the latter half of the five-year period to 2018.

While the emergence of low-cost games for mobile devices has slowed demand for other games and may continue to temper growth opportunities in the foreseeable future, industry revenue has picked up amid stronger sales in games, downloadable content (DLC), consoles and their corresponding products.

Over the five years to 2018, industry revenue increased at an annualized rate of 7.2 percent. In 2018, revenue is expected to total $43.7 billion. This growth was assisted by growing consumer incomes and the releases of the revised Xbox One and PlayStation 4, as well as the Nintendo Switch, throughout the five-year period.

The Social Network Game Development Industry is indeed a very large industry and pretty much thriving in all parts of the world especially in developed countries.

Statistics has it that in the united states of America alone, there are about 5,554 licensed and registered social network game development companies (indie games studios inclusive) responsible for employing about 12,593 employees and the industry rakes in a whooping sum of $4 billion annually with an annual growth rate projected at 16.7 percent between 2013 and 2018.

It is important to state that the companies holding the largest market share in the Social Network Game Development industry include Zynga Inc. and King Digital Entertainment PLC. The need to be creative with funding this business is key to the success of the business because indie games are smaller than mainstream video games.

Indie game developers are generally not financially backed by video game publishers, who are risk-averse and prefer “big-budget games”. Instead, indie game developers usually have smaller budgets, usually sourcing from personal funds or via crowdfunding.

2. Executive Summary

David Lance® Indie Game Studio, Inc. is a licensed indie game development studio that will be located in New Orleans – Louisiana. We have been able to secure a standard facility in a central and easy to locate area in New Orleans.

David Lance® Indie Game Studio, Inc. is going to be involved in the development of a wide genre of video games played on a social network platform, including websites such as Facebook and smartphone applications. The games developed are free to play and do not require the user to own any software or console to participate.

We conducted a thorough market research and feasibility studies and we were able to come to the conclusion that New Orleans – Louisiana is the right place to start our indie game development studio. Our client’s best interest would always come first, and everything we do is guided by our values and professional ethics. We will ensure that we hire professionals who are well experienced in the industry.

Our workers are going to be selected from a pool of talented and highly creative game developers in and around New Orleans – Louisiana and also from any part of the world as the business grows. We will make sure that we take all the members of our workforce through the required trainings that will position them to meet the expectation of the company and to compete with leading studios in the United States.

David Lance® Indie Game Studio, Inc. will at all times demonstrate her commitment to sustainability, both individually and as a business, by actively participating in our communities and integrating sustainable business practices wherever possible.

We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely. David Lance® Indie Game Studio, Inc. is a private business that is owned and managed by David Lance and other team members. David in has a Degree in Computer Engineering from the University of Illinois.

This Arlington, Virginia native originally attended college to become a video game developer and he has Advanced Professional Certificate in Animation, Graphic Design or Illustration, Certified Professional Animators, Toon Boom Certification and 3D Modeling, Art & Animation Certification.

3. Our Products and Services

David Lance® Indie Game Studio, Inc. is established with the aim of maximizing profits in the social network game development Industry.

We want to compete favorably with the leading indie game studios in the United States of America which is why we have put in place a competent quality assurance team that will ensure that all our games surpass our customers’ expectations and match-up with international best practices.

We will work hard to ensure that David Lance® Indie Game Studio, Inc. is not just accepted in New Orleans – Louisiana but also throughout the United States of America and the all over the world via the internet. These are the services and products that will be made available to our clients;

• Developing a wide genre of video games and social network games such as puzzle games, role-playing and gambling games et al
• Maintaining social network games
• Expanding existing social network games
• Contracting third-party advertisers to reach target demographics

4. Our Mission and Vision Statement

• Our Vision of starting David Lance® Indie Game Studio, Inc. is to build a world – class indie game studio that will operate with no creative restrictions.
• We will be known for innovation, creativity, and artistic experimentation.
• Our mission for establishing David Lance® Indie Game Studio, Inc. is to build a world class indie game studio that will be known to produce top-notch video games and to become the number one choice for social networking sites.
• We want to build an indie game studio that can favorably compete with other leading brands in the industry.

Our Business Structure

David Lance® Indie Game Studio, Inc. intends starting small in New Orleans – Louisiana, but hopes to grow big in order to compete favorably with leading indie game studios in the industry both in the United States and on a global stage. We are aware of the importance of building a solid business structure that can support the kind of world class business we want to own.

At David Lance® Indie Game Studio, Inc. we will ensure that we hire people that are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders.

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the board of trustees of the company. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions;

• Chief Executive Officer
• Creative Director
• Human Resources and Admin Manager
• Sales and Marketing Executive

Video Games Designers and Developers

Client Service Executive

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

• Increases 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
• 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
• Evaluates the success of the organization

Creative Director:

• Serves as project manager of the organization; works directly with employees
• Responsible for designing and approving concepts for video games production for client
• Develops strategic plan by studying technological and financial opportunities; presenting assumptions; recommending objectives.
• Maintains quality service by establishing and enforcing organization standards.
• Maintains professional and technical knowledge by attending educational workshops; reviewing professional publications/journals; establishing personal networks; benchmarking state-of-the-art practices; participating in professional societies.
• Makes certain that production and development department perform efficiently, coordinate employee efforts, and facilitate communications between management and staff
• Ensures that the organization works in line with international best practices.

Admin and HR Manager

• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• 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.
• Defines job positions for recruitment and managing interviewing process
• Carries out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Oversees the smooth running of the daily office activities.

Sales and Marketing Manager

• Manage 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
• Identifies development opportunities; follows up on development leads and contacts
• Responsible for handling business research, market surveys and feasibility studies for clients
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Creates new markets cum businesses for the organization
• Empowers and motivates the sales team to meet and surpass agreed targets

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 for one or more properties.
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensures compliance with taxation legislation
• Handles all financial transactions for David Lance® Indie Game Studio, Inc.
• Serves as internal auditor for David Lance® Indie Game Studio, Inc.
• Designing the layout of the game
• Making edits based on feedback
• Writing code to turn the designer’s concepts into a playable game
• Programming the game’s terrain
• Programming artificial intelligence for non-player characters within the game
• Creating code, editing code, incorporating artwork into the game, enabling online access and creating game menus
• Balance and adjust gameplay experiences to ensure the critical and commercial success of the product.
• Solicit, obtain, and integrate feedback from design and technical staff into original game design.
• Welcomes clients and visitors by greeting them in person or on the telephone; answering or directing inquiries.
• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to potential clients when they make enquiries
• Receives parcels / documents for the company
• Distributes mails in the organization
• Handles any other duties as assigned by the human resources and admin manager.

6. SWOT Analysis

David Lance® Indie Game Studio, Inc. employed the services of a core professional in the area of business consulting and structuring to assist our organization in building a well – structured indie games studio that can favorably compete in the Video Games Development industry in the United States.

Part of what the team of business consultant did was to work with the management of our organization in conducting a SWOT analysis for David Lance® Indie Game Studio, Inc. Here is a summary from the result of the SWOT analysis that was conducted on behalf of David Lance® Indie Game Studio, Inc.;

Our core strength lies in the power of our team; our workforce. We have a team of creative and highly proficient animation artists, a team with excellent qualifications and experience in various niche areas in video games design and development.

Aside from the synergy that exists in our carefully selected workforce, we have some of the latest and efficient software apps and equipment and of course our work output and services will be guided by international best practices in the industry.

As a new indie game studio in New Orleans – Louisiana, it might take some time for our organization to break into the market and gain acceptance especially from high paying video games players in the already saturated Video games development industry; that is perhaps our major weakness. Another weakness is that we may not have the required cash to promote our business the way we would want to.

• Opportunities:

Video games players must have internet access to join social networks and play games. Increased broadband coverage translates to more potential industry customers and higher revenue. The number of broadband connections is also a good proxy for the number of households that join social networking websites.

A higher number of people connected to the internet drives increases in social network adoption. The number of broadband connections is expected to increase in 2018, representing a potential opportunity for the industry.

Leading into 2015, there was a concern that the rise of easy-to-use tools to create and distribute video games could lead to an oversupply of video games, this was termed the “indiepocalypse” which will likely pose a threat to us. With increase in the numbers of consumers that access social networks through their smartphones, game developers that optimize games for mobile devices can boost revenue by encouraging game use on the go.

An increased number of mobile internet connections facilitates this kind of use. The number of mobile internet connections is expected to rise over 2018, but it is quickly approaching saturation, which indicates a potential threat to the strong revenue growth of the past five years.

7. MARKET ANALYSIS

• Market Trends

If you conversant with happenings in this line of business, you will agree that the nature of indie game development had existed since the rise of the personal computer in the 1980s through shareware. Indie gaming saw a rise in mainstream popularity in the latter half of the 2000s, due to new online distribution methods and widely available game development tools.

The rise was also spurred on by several influential games released during the 2010s, such as Super Meat Boy, Fez, Braid, Minecraft, Undertale, and Cuphead. Indie development saw a resurgence in the early 2000s, principally driven by the availability of online distribution, allowing game developers to sell directly to players and bypassing limitations of retail distribution.

Software technologies used to drive the growth of the World Wide Web, like Adobe Flash, were available at low cost to developers, and provided another means for indie games to grow. The new interest in indie games led to middleware and game engine developers to offer their products at low or no cost, in addition to open source libraries and engines.

Dedicated software like GameMaker Studio and tools for unified game engines like Unity and Unreal Engine removed much of the programming barriers needed for a prospective indie developer to create these games.

Lastly, while direct online distribution helped indie games to reach players, the arrival of online digital game storefronts such as Steam and GOG.com further boosted awareness of indie games, as these storefronts allowed developers to publish, update, and advertise their games directly, and players to download the games anywhere.

8. Our Target Market

When it comes to indie games studio business, there are no exemption to who you can market your services to especially finished video games. Your video games can be marketed to a wide range of video game players especially via the internet.

In view of that, we have created strategies that will enable us reach out to a wide demography of video game players who we know will need our services. We have conducted our market research and survey and we will ensure that our indie game studio attracts of popular game players all across the globe via the internet.

Our Competitive Advantage

The competition in the video games development industry is getting stiffer by the day, you have to be highly creative and come up with creative games, concepts and good interface in order to survive in the industry. The video games development industry is indeed a profitable and at the same time a highly competitive industry.

We are quite aware that to be highly competitive in the video games development industry means that you are not only expected to be able to deliver consistent and highly creative video games, but you must be able to meet set targets.

Our Competitive Advantage lies in the power of our team; our workforce. We have a team of creative and highly proficient video games designers and developers, a team with excellent qualifications and experience in various niche areas in the video games development industry.

Aside from the synergy that exists in our carefully selected workforce, we have some of the latest and efficient software and equipment and of course our work output and services will be guided by international best practices in the industry.

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

David Lance® Indie Game Studio, Inc. is established with the aim of maximizing profits in the video games development industry and we are going to do all it takes to meet and surpass the expectations of our clients. David Lance® Indie Game Studio, Inc. will generate income by offering the following services and products;

• To fund the game, we will rely on or start a crowd-funding campaign, finding a publisher, and building community support while in development
• Developing a wide genre of video games and social network games such as puzzle games, role-playing games and gambling games et al

10. Sales Forecast

One thing is certain, there would always be social networking sites who would want an indie game development studio to develop games and host on their platforms, and of course there would always be game lovers looking for creative video games to play.

We are well positioned to take on the available market in the video games development industry, and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operation and grow our indie game studio to enviable heights.

We have been able to examine the indie games development market, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below are the sales projections for David Lance® Indie Game Studio, Inc., it is based on the location of our business and of course the wide range of our services and target market;

• First Fiscal Year (FY1): $250,000
• Second Fiscal Year (FY2): $400,000
• Third Fiscal Year (FY3): $750,000

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 there won’t be any major competitor offering same services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

Video game distribution is shifting towards online marketing. For developers, online marketing is much more profitable and more readily available than retail marketing, although distribution portals have been criticized for collecting a large portion of game revenue.

Our sales and marketing team will be recruited based on their vast experience in the Video games development industry and they will be trained on a regular basis so as to be well equipped to meet their set targets.

Our goal is to grow David Lance® Indie Game Studio, Inc. to become one of the leading indie game studios in the United States of America which is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force to reckon with not only in New Orleans – Louisiana but also in other cities in the United States of America.

David Lance® Indie Game Studio, Inc. is set to make use of the following marketing and sales strategies to attract clients and win animation videos contracts;

• Leverage on the internet to promote our video games
• Engage direct online marketing and internet digital distribution options of our games
• Encourage word of mouth marketing from loyal and satisfied people who have played our video games
• Market video games at various indie game trade shows, such as Independent Games Festival and IndieCade.
• Pitch our business at Indie Game Jam (IGJ) (Indie Game Jam (IGJ) is an annual event that allows indie game developers to experiment and present ideas without publisher restrictions).

11. Publicity and Advertising Strategy

We have been able to work with brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. We are set to become the number one choice in the whole of the New Orleans and beyond which is why we have made provisions for effective publicity and advertisement of our indie game studio.

Below are the platforms we intend to leverage on to promote and advertise David Lance® Indie Game Studio, Inc.;

• Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, YouTube, Google + et al to promote our products and services
• Install our Billboards on strategic locations all around New Orleans – Louisiana
• Distribute our fliers and handbills in target areas
• List our indie game studio in local directories / yellow pages
• Advertise our indie game studio in our official website and employ strategies that will help us pull traffic to the site.
• Ensure that all our staff members wear our branded shirts and all our vehicles and trucks are well branded with our company logo et al.

12. Our Pricing Strategy

At David Lance® Indie Game Studio, Inc. we will adopt the pricing system that is obtainable in the industry but we will ensure that we keep the prices of our video games a little below the average market rate by keeping our overhead low and by collecting payment in advance. In addition, we will also offer special discounted rates to all our customers at regular intervals.

• Payment Options

The payment policy adopted by David Lance® Indie Game Studio, 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 David Lance® Indie Game Studio, Inc. will make available to her clients;

• Payment via bank transfer
• Payment with cash
• Payment via online bank transfer
• Payment via mobile money
• Payment via Point of Sales Machines (POS Machines)
• Payment via check

In view of the above, we have chosen banking platforms that will enable our client make payment for video games and sponsorship without any stress on their part.

13. Startup Expenditure (Budget)

The cost of setting up an indie game development studio can be relatively expensive for new entrepreneur especially if you are all out to start a standard indie game studio. Aside from the money required to purchase the latest software, gadgets and production equipment, you would also need a huge cash base to be able to attract and pay professional video games designers and developers

Essentially, this are the area we are looking towards spending our start – up capital on;

• The Total Fee for incorporating the Business in the United States of America – $750.
• The budget for liability insurance, permits and license – $2,500
• The amount needed to acquire a suitable Office facility with enough space for standard indie game studio in a business district 6 months (Re – Construction of the studio facility inclusive) – $100,000.
• The cost for equipping the office (computers, laptops, projectors, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) – $2,000
• The cost of launching our official website – $600
• Budget for paying at least 5 employees for 2 months and utility bills – $50,000
• Additional expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,500
• Miscellaneous – $10,000

Going by the report from the market research and feasibility studies conducted, we will need about three hundred and fifty thousand (350,000) U.S. dollars to successfully set up a medium scale but standard indie game studio in the United States of America.

Generating Funds/Startup Capital for David Lance® Indie Game Studio, Inc.

David Lance® Indie Game Studio, Inc. is a private business that will be owned by David Lance and some partners. They decided to restrict the sourcing of the startup capital for the business to just three major sources.

• Generate part of the startup capital from personal savings and sale of his stocks
• Generate part of the startup capital from friends and other extended family members
• Generate a larger chunk of the startup capital from the bank (loan facility).

N.B: We have been able to generate about $100,000 (Personal savings $85,000 and soft loan from family members $15,000) and we are at the final stages of obtaining a loan facility of $250,000 from our bank. All the papers and documents has been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

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 business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.

One of our major goals of starting David Lance® Indie Game Studio, 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 develop highly creative and interesting video games and to offer sponsorship or our video games a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.

David Lance® Indie Game Studio, 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 company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner of our business strategy.

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 Incorporation: Completed
• Opening of Corporate Bank Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Securing a standard office facility plus renovation of the facility and construction of a standard indie game development studio: Completed
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Conducting Feasibility Studies: Completed
• Generating part of the startup capital from the founders: Completed
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents: In Progress
• Design of Logo for the business: Completed
• Secure trademark for our products: In Progress
• Printing of Promotional Materials: Completed
• Recruitment of employees: In Progress
• Purchase of the needed computers, laptops and other video games development gadgets: Completed
• Purchase of the needed furniture, office equipment, software applications, electronic appliances and facility facelift: In progress
• Creating Official Website for the business : In Progress
• Creating Awareness for the business: In Progress
• Health and Safety and Fire Safety Arrangement : In Progress
• Establishing business relationship with vendors and key players in the industries: In Progress

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Video Game Design and Development

Encouragement, advice, and support for aspiring game designers.

How to Start Your Gaming Company

Let’s face it: the video game industry has never been more significant. Don’t believe me? Try getting a PS5 right now. It’s ok. I’ll wait…

Who doesn’t want to start their own game company? Who doesn’t want to create a new killer IP?

The popularity of video games is a great reason to start your own game company. Fancy yourself a creative developer? Or maybe you see yourself as a programmer, designer, or studio head.

Regardless, it’s a great time to become a game developer. This doesn’t mean it’s easy by any means. However, we have ways and means to help you over the hill.

Let’s see the various ways why you should start your own video game company, how to make sure the business is a good fit, and the different steps to make it happen.

Why Start Your Own Video Game Company?

Because you want to make games, duh!

Also, because the video game industry within the United States alone is well worth 60.4 billion U.S. dollars . Expect the total value of the game industry to rise exponentially. To the tune of $200 billion .

Is It The Right Business For You?

We’ll be honest: not everyone is cut out for the game development business. It can be really tough. You can scrape by for years, working late nights to meet deadlines.

However, if you have no problems with scenarios like that, and want to get your IP out there for people to see, then it may be worth starting your own company.

Furthermore, let’s look at some ways to see if it’s for you.

Assess Your Skills and Experiences

First thing’s first: you need to assess your skillset. This is an excellent opportunity for both introspection and analysis.

What do you excel at in video game design?

Are you good with programming languages?

Are you a web designer by trade? Or

Are you a special effects expert?

Your background and your personal skill set can give you significant advantages when starting your own game company. Take into account your professional experience as well. Consider how well-versed you are in certain aspects of game development, game design, and turn it into a business plan.

Another part of your own work history is your familiarity with games. To get a good start on starting a game company, you should always be creating. Whether it’s games, designs, or discussing game design on your favorite Subreddit, putting your name out there and consulting with other talented developers can help you out big time.

Growth Potential

This good practice of reflecting and predicting aspects of your game and developing a business plan can make all the difference. Let’s look at a few critical elements of turning untested developers into experienced individuals confident about designing games.

• Who is your game for? Is it for children, teens, or mature audiences?
• What type of game is it?
• Will it go on Steam for $9.99? A full $60?
• Okay, this one may not pack the punch of the others, but a massive part of designing your small business has a great company name.

Starting your own business requires a lot of financial and business sense. Startup costs, staff salaries, and office space all are part of the game developing industry.

How does a game company make money? By making games!

How does a game development company make games? With resources!

How do you…okay, you see where I’m going with this. Many different moving parts go into making any business decision, let alone starting your own game company. Finances will likely be the main focus of your business for the foreseeable future.

You will need to be extremely detailed here, as finances are no joke. Having a concrete budget for employees, software licenses, and office space are great starting points. Many developers create good business plans with financial professionals to give them a bit of ‘cushion.’

Start Your Own Video Game Company

Getting Started

Getting started can be the most challenging part of a company’s formation. Let’s ease the burden a bit by offering some useful tidbits you can use to make a difference in your development journey.

Find A Mentor to Help You Through the Process

We can’t stress how important this is. A good mentor can make the difference between you thriving in the video game industry. Have you had a great design teacher in high school or college? Why not ask these people for some pointers?

Many graphic design and animation programs have in-depth mentor aspects to them. These mentors give students critical insight into the industries they have mastered.

Industry experts can cover many topics, like a business, costs, development, job training, and creating critical business documents. Find people you trust to help make you keen on business and creative decisions.

Build a Team

Possibly the most essential aspect of becoming a professional game developer is putting together a good team. Your team doesn’t need to be huge, filling a giant office building. Most small teams work better together.

Try to shoot for at least ten people you can create comfortably with.

Make a Game Document

A game document is your detailed outline of the game you want to develop. Think of it as a more in-depth elevator pitch of your title.

This game document usually includes the genre, title, synopsis, game development timeline, and a few more fundamental aspects. These documents are great ways for companies with plenty of money to take an interest in your IP.

Final Thoughts

Overall, knowing how to start a video game company is an invaluable set of tools to take your creations to the next level. Creating a successful gaming company requires a lot of moving parts. However, it’s entirely possible to accomplish.

Most importantly, it allows you to share ideas, designs, indie video games, and art with an eager crowd of video gamers.

Popular Posts

About Bryan Wirtz

A graduate of Penn State University and a Philadelphia native, Bryan has been a gamer since day one. Using his vast experience of gaming, game culture, and all things tech, Bryan aims to deliver the most up-to-date and captivating game design content to readers.

January 18, 2022 at 4:16 pm

I love this it was very helpful

June 25, 2022 at 10:10 pm

Very good and detailed insight on the subject of game production.

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Our sample business plans are examples of what one business owner did. That doesn't make them perfect or require you to cram your business idea to fit the plan structure.

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Writing a Business Plan for Independent Game Ventures Writing a Business Plan for Independent Game Ventures

The creation of a solid business plan is as much an art as it is a science. What follows is an overview of the steps needed to transform your "pitch" into a viable plan that encourages investment.

February 20, 1998

Author: by Dante Monique Pirouz

With the average cost for producing a computer game topping $2M per title (that's twice as much as it cost just two years ago on average), how does an independent producer get the money to create that killer game concept? (i) Production costs may be growing exponentially but so are gaming industry revenues. Unit sales of video game and computer entertainment are worth an estimated $5.3 billion in 1997. (ii) Sales are up almost 60% for the first quarter of 1997 over the same period last year thanks to strong Sega, Nintendo 64 and Playstation sales. (iii) With sales of interactive entertainment software expected to explode to $8 billion by 2000, this seems like an ideal time to attract a finance partner to an independent gaming project. (iv) The unfortunate reality is that even though the industry taps a huge consumer market, most independent gaming projects don't get past the concept phase because they can't get the money they need to start production. The only way to get your foot in the door with potential investors is to have a good gaming concept and a well-written business plan. Unfortunately, as many "digital entrepreneurs" are finding out, writing a business plan for a new media venture is not easy and writing a business plan for a gaming project is as much art as it is science. Of all the types of ventures to finance, I've found gaming projects to be the most difficult. Why is it so hard for an independent gaming project to get financed? I think there are a couple factors that make it tough to convince investors that independently produced games are worth investing in:

Very few titles ever make their costs back - It's estimated that only 4% of titles released in 1996 made money. v EA, Interactive Software, CUC and the other large producers dominate the market. Smaller players have either had to play ball with the bigger boys or fold up shop. With the cost of producing a commercially viable game climbing into the millions, it's a challenge to guarantee that enough units will sell to break even.

Very few projects ever make it to the shelf - The industry has consolidated to a point where a few large companies control distribution. Just like the record industry, it's almost impossible to sell units to retailers as an independent. Most successful games have to find a distribution deal with some major even if they are produced independently.

Does that mean that you can't get the money to do your project? While the process of getting financial backing is tough, it can be done. A sound, well-written business plan that deals head-on and convincingly with these two aforementioned issues is the key. All investors, regardless of the industry, look for projects that will give their investment back, plus a premium. Risky projects, like computer games, can still interest an investor if he/she can be convinced that the return, relative to the investment, is large. Creating a business plan that tells the story of your gaming project accurately, while at the same time relating its money making potential, requires finesse with both words and numbers. Especially because the traditional benchmarks that you might use to measure the success of, for example, a light bulb manufacturer, don't apply to a video or CD-ROM game. You'll find in writing your plan that it's not enough to have a general idea of what you want to do. You must nail down the specifics of every aspect of the project in order to prove that it is executable. In other words, if you are going to ask someone to fund your project, you have to do your homework. A professionally written business plan consultant can cost upwards of $10,000 per plan. When you hire a business plan consulting firm or an investment bank to handle your financing deal, you're mostly paying for the background research that the analysts collect. Surprisingly enough, doing the homework necessary to get the plan done yourself can often be very cheap and it doesn't have to take more than a few days of diligent work to get the plan started. The following are some tips and tricks that I have learned the hard way while pitching gaming projects to various types of investors.

Hit The Books

Finding benchmark data that works for entertainment and new media projects is tough to do. Background data is valuable because it creates the foundation upon which all your financial and strategic assumptions are based. Professional business plan writers know that reference in the plan to a secondary report, study, survey or business case study can do a lot to satisfy a skeptical investor. Because reporters have the access to information and studies that most of us can't get, magazine and newspaper articles are a fantastic source for statistics, growth rates, analyst predictions, and consumer and distribution trends. Competitive analysis magazines like Game Developer, do a thorough job of tracking consumer, technological and industry trends. Even the most unusual trade magazines (like Supermarket News, Texas Monthly, Forbes) track sales figures and growth rates for the video game industry - everything you need to fill your business plan with cold, hard facts. A really good resource for data (that's also cheap) is your public library. I spent a little more than an hour on my library's magazine search system and was able to email myself over 50 articles that offered industry statistics, trends, consumer buying patterns, market share of the top producers, etc. You are adding tremendous credibility to your plan by including this secondary data but be sure to include quote citation in a footnote in your plan. Keep in mind however, regardless of how thoroughly you research, you're going to have to do some "guesstimating" to come up with the numbers and the strategies that will make your project work. Don't be afraid to put down your best guess. Also, don't be afraid to change it later if you find contradictory data.

Nail The Executive Summary

The Executive Summary is the one section guaranteed to be read by everyone who looks at your business plan. If they aren't impressed by this one (or at most two) page summary, they won't read any further and your "sales pitch" will be over. How do you know what to put here? The easiest trick I've found for writing the Executive Summary is to write this section last. Once you have most of your sections finished, it's much easier to take a few of the most descriptive sentences from each section. Then all you do is create a summary paragraph headlined by each section title. In the Executive Summary, you'll start to feel like you're repeating yourself. Don't be afraid of that. Many potential investors won't have the time to read through the rest of your plan before they make a decision to talk details with you. The Executive Summary should reiterate the most crucial points from each section, even if it sounds like a repeat. The final paragraph of your Executive Summary should be the Funds Sought paragraph. There you should clearly state how much money you need and what the return on investment will be. An example of how you might word this follows: Funds Sought The Company anticipates one round of financing with $1.5 million being sought from a single investor in return for passive equity. These funds will be utilized for start-up expenses in addition to production, staffing, distribution and marketing costs related to " Your Game Title Here ."

In The Game Business, Distribution Is King

This paragraph clearly states what you want from the investor. Of course, you can tailor the language to match the type of deal you are looking for whether it be a debt, distribution or multiple investor deal.

The key to any game business plan in my opinion is a sound distribution strategy. Killer gaming elements and smooth graphics don't mean a thing if you can't show how the product is going to get to the cash register. Distribution is a very complicated business in and of itself. For this reason most gaming projects sell their rights to distribute to the big boys who have a distribution network already in place. 10 vendors control 90% of the market and much of that is due to a lock on distribution. Dealing with the distribution issue is like the egg and the chicken phenomenon. Big distributors won't be interested unless you have a financial backer. Investors will be looking for a strong distribution partner and a sound marketing strategy to ensure that the product will get into the stores. The easiest solution to the distribution issue, of course, is to partner with a major distributor. If you're lucky, you can package the financing and distribution deals with one major company. Partnering with a major distributor also means that you'll get help with the marketing. They may dictate the platform you launch first as well as creative issues, but given the difficulty in getting retail shelf space, it can save you a lot of where and tear. If you do decide to go with "do-it-yourself" distribution and marketing, make sure your sales estimates show a slow build as you get awareness up. Also, show your investor that you have some smart strategies for getting your game into customer's hands, whether it's via direct mail, on the net or via shareware or in small, independent retail sites. Don't neglect to include a PR plan which can give you some inexpensive market awareness.

Be sure to include bios or resumes from every person you know who could contribute to the project. Even if the project team isn't set yet it's important that investors know that you have a crew of experienced professionals ready to go when the money comes through. Also include support personnel who might not be directly involved with the production of the project, but who support the company's activities. That includes your legal counsel, business advisors, accountants, etc. These are the people who your investor will need to know and work with to make sure his or her investment is protected and being managed properly. Include an organizational chart even if no one is on payroll yet, or if almost everyone will remain a freelancer. It helps to show the chain of command and the critical responsibility hierarchy that will get the project done.

Concentrate On The Costs

While assumptions can be made on how many units you plan to sell based on the size of your target market and your distribution plan, estimating what it will take to get the project done is that part of the financials that tend to get a lot of scrutiny. If the numbers are too low, they will be considered unrealistic. If the numbers are too high, the project will have a much higher break-even rate (when the retail price minus marketing, distribution and manufacturing costs surpass the initial investment). The hard part about estimating the cash flow for any new media business is that there is often a development period during which there will be no real inflow of income and a lot of outflow of cash for start-up expenses. I recommend concentrating on determining what the costs will be as accurately and as detailed as you can. For the financial section you will need to track these expenditures month by month for the duration of the project. Most gaming projects are averaging an 18 month production cycle. The questions you should answer include: Will you be leasing office space in the third month? Will you need to hire programmers (how many and what month will the start expecting a paycheck)? Will you keep them on as employees or will you let them go after a few months as freelancers? Will you use live action? How much are unknown actors charging these days? You may or may not have a lot of overhead, but don't forget to anticipate that if you are bringing in a crew of programmers and designers, you'll probably need an office or a studio in which to house them. Even if you plan to have everyone meet at your house for staff meetings and work together via email, you'll want to be frank about that in your business plan and explain to your investor how that will work and what the benefits are (huge cost savings and reduced staff costs since everyone will remain freelance, etc.) These cost estimates will be based on the project schedule and launch date, cross-checked with budgets of similar productions (find that data in your research).

Quantify Everything

The most sensitive and disputable element in your plan are your financials. The "numbers" are also usually the one thing that creative business people are most intimidated by. Making "reasonably sound" projections is the goal. We all know that game titles live and die by the number of units sold. However, the variables that dictate how hot a game sells are subject to a lot of intangibles - trends, platform penetration, gaming type (shoot em ups vs. puzzle-based strategy), PC vs. console sales, hardware prices, etc. The easiest way to create reasonable financials is to create scenarios of what the world might be as the product is being developed and launched. You can calculate your financials based on three scenarios: worst case scenario (which could assume that costs are very high and that sales are initially slow); middle case scenario (which is based on your best guess estimates); and best case scenario (which assumes you can deliver the project under budget, under schedule and with strong sales or distribution). Consider various market trend scenarios: Are sales of PC games on the rise versus console games? Did the launch of the Nintendo 64 boost game unit sales? Are they forecasting a slow Christmas season? Creating scenario financials shows investors that you have considered all the possible outcomes and are prepared.

The Package

After sitting through countless investor meetings, I've come to realize that at the end of the day packaging is everything. I have seen many business plans so horribly packaged that there was little chance for the project to be taken seriously. Create a plan that's easy to read. Include diagrams, character and environment sketches (in color if you can), gaming schematics and so on. Of course, it goes without saying that a well laid out, organized (make sure you include a table of contents and page numbers), and bound (spiral always seems to work best) document is critical. Most plans I've written have ranged between 60 and 200 pages (including financial documents). You may be able to introduce the project to a potential investor with an abbreviated version of the plan that includes only the Executive Summary, the Financials, the Game's Storyline, Project Schedule & Budget and the Production Team Bios which often is no more than 20 pages.

A Final Word

Writing business plans, regardless of the type of project, is a challenge. The type of detail that an entrepreneur is required to document can be aggravating. I often recommend that you get outside counsel while writing your plan even if you are going to do the writing yourself. Solicit the help of an accountant, a lawyer or an executive who works in the gaming industry to review the plan drafts. The insight that an objective, experienced industry professional can give you will save you a lot of stress when you start to present your plan to outsiders. And be open to criticism and comment. If readers don't understand why you estimated your potential market at a particular size, don't assume they're dumb. Know that they have identified an area that needs more clarification or data to support your assumptions.

Dante Monique Pirouz is Senior Partner of R35 ( www.r35.com ), a limited liability corporation based in Los Angeles. Her company specializes in developing strategic communications for new media and internet ventures. R35's clients include Cal Tech, Virgin Records/Amnesty International and Rubin Postaer Interactive, among others. Current new projects include masscommunication.com , an online digital design school and bookdeal.com , an online virtual publisher. She has written and presented numerous gaming business plans for Polygram/Motown Records , Mandingo Entertainment , MediaPro and Urban Venture Partners . She has an MBA in Strategic Planning from Wharton Business School and an MA in International Business from the Lauder Institute of the University of Pennsylvania . Contact her at [email protected] .

i "Gaming Seen Doubling by 2000," Television Digest , May 26, 1997 ii "Gaming Seen Doubling by 2000," Television Digest , May 26, 1997 iii "Game Sales Surge: Nintendo 64 Powers A Strong First Quarter," HFN The Weekly    Newspaper for the Home Furnishing Network , May 12, 1997 iv "Gaming Seen Doubling by 2000," Television Digest , May 26, 1997 v "CD-ROMs: The Giants Rule," Business Week , Oct. 6, 1997 vi "The Disappearing CD-ROM Players," Business Week , Dec. 16, 1996

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Featured Blogs

How to Start a Profitable Game Business [11 Steps]

By Nick Cotter Updated Feb 02, 2024

Business Steps:

1. perform market analysis., 2. draft a game business plan., 3. develop a game brand., 4. formalize your business registration., 5. acquire necessary licenses and permits for game., 6. open a business bank account and secure funding as needed., 7. set pricing for game services., 8. acquire game equipment and supplies., 9. obtain business insurance for game, if required., 10. begin marketing your game services., 11. expand your game business..

Starting a game business requires a keen understanding of the current market landscape. Performing a detailed market analysis is crucial for identifying your target audience, understanding industry trends, and scoping out the competition. Here are some pivotal steps to guide you through your market analysis:

• Analyze the demographics of potential customers, including age, gender, gaming preferences, and spending habits.
• Research current gaming trends, such as popular genres, platforms, and emerging technologies like VR and AR.
• Evaluate the competitive landscape by identifying key players, their market share, and the strategies they employ.
• Investigate the market size and growth potential for the type of games you intend to develop.
• Look into the legal and regulatory environment of the gaming industry to ensure compliance and anticipate potential barriers.
• Assess the distribution channels for games, such as digital storefronts, app stores, or physical retailers, and their respective market penetration.
• Gather and analyze consumer feedback on existing games to pinpoint unmet needs or dissatisfaction that your business could address.

Are game businesses profitable?

Yes, game businesses can be very profitable. Many game companies have successful, profitable business models and have proven to be a lucrative industry. There are a variety of ways in which game companies can make money, including through the sale of the games themselves and through microtransactions or in-game items. Additionally, some companies offer their games for free and generate revenue through advertising or additional services.

Embarking on the journey of starting a game business requires a solid blueprint for success. Drafting a comprehensive business plan is imperative as it outlines your vision, strategies, and the actionable steps to make your gaming venture a reality. Here's a concise guide to assist you in creating a robust game business plan:

• Define your game's unique value proposition and target market to identify the niche your business will serve.
• Assess the market by researching competitors, understanding industry trends, and determining market size and potential growth.
• Develop a monetization strategy, whether it's through direct sales, in-app purchases, subscriptions, or advertising.
• Create a marketing and sales plan, detailing how you'll promote your game and attract users.
• Outline your development plan, including timelines, milestones, and the technology stack that will be used for game creation.
• Calculate financial projections, including startup costs, operating expenses, revenue forecasts, and break-even analysis.
• Identify your team and any additional talent needed, highlighting their roles, expertise, and how they'll contribute to the success of the business.
• Consider potential risks and obstacles, and how you'll mitigate them, to prepare for challenges ahead.

How does a game business make money?

One way that a game business can make money is through selling digital downloads, in-game currency or merchandise related to the game. For example, many mobile game businesses also offer monthly subscription plans and microtransactions. A game business can also make money by targeting advertisements to the right audience. For example, a 11 Steps To Starting a Successful Spice Business would likely target entrepreneurs who are interested in launching their own food business. Additionally, companies may be willing to pay for sponsorship or product placement deals within the game, providing another source of revenue for the business.

Creating a compelling game brand is crucial for standing out in the competitive gaming industry. It involves establishing a unique identity that resonates with your target audience and differentiates your offerings from competitors. Here are some key steps to consider:

• Define Your Brand Essence: Determine the core values, mission, and personality of your brand that will appeal to your target players.
• Identify Your Unique Selling Proposition (USP): Pinpoint what makes your games unique and why players should choose them over others.
• Create a Memorable Brand Name and Logo: Develop a name and visual identity that are easily recognizable and reflect your brand's essence.
• Establish a Consistent Visual and Narrative Style: Ensure your games, website, and promotional materials consistently reflect your brand's aesthetic and tone.
• Craft a Catchy Tagline: Create a succinct and memorable tagline that encapsulates the feel and promise of your brand.
• Engage with Your Community: Build and maintain a relationship with your audience through social media, forums, and events to foster brand loyalty.

How to come up with a name for your game business?

When it comes to choosing a name for your game business, the possibilities are endless! It's important to ensure that your name accurately reflects the type of business you are running, is easy to pronounce, and is memorable. Start by brainstorming ideas. Think about what types of games you offer, relevant adjectives that describe your company, and any unique elements that define your brand. Consider combining words to create a unique name that is both creative and eye-catching. Once you've narrowed down the possibilities, take advantage of online resources to check the availability of domain names and make sure no one else is using the same name. With a little creativity and proper research, you'll have a memorable name for your game business in no time!

To establish a solid foundation for your game business, formalizing your business registration is a crucial step. This legal process gives your venture legitimacy and protects your personal assets. Follow these key points to ensure your registration is completed correctly:

• Choose a business structure (e.g., sole proprietorship, LLC, corporation) that best suits your needs and offers the right balance of legal protection and tax considerations.
• Register your business name with the appropriate state agency, ensuring it's unique and not already in use. This could be your Secretary of State or a similar entity.
• Obtain an Employer Identification Number (EIN) from the IRS for tax purposes, even if you don't plan to have employees immediately.
• Apply for any necessary business licenses and permits, which can vary depending on your location and the type of games you intend to produce or sell.
• Be aware of your local zoning laws to ensure that your business operations comply with municipal regulations.
• Consider the benefits of trademarking your game titles or company logo to protect your brand identity.
• Keep records of all your registration documents and make note of any renewal dates to maintain your business's legal status.

Resources to help get you started:

Explore key resources specially curated for game entrepreneurs to navigate market trends, operational strategies, and business growth insights:

• Gamasutra: Offers in-depth articles, analysis, and insights on the video game industry's business and design aspects. https://www.gamasutra.com
• Newzoo: Known for its comprehensive global games market reports, providing detailed analytics on gaming trends, audiences, and revenue forecasts. https://newzoo.com
• Pocket Gamer.biz: Focuses on the mobile gaming sector, featuring news, insights, and discussion on market trends and strategies. https://www.pocketgamer.biz
• The Game Developers Conference (GDC) Vault: An invaluable repository of talks, presentations, and workshops from industry experts on game development, production, and business. https://www.gdcvault.com
• IGDA - International Game Developers Association: Offers resources, support networks, and advocacy for individuals and businesses within the game industry. https://www.igda.org
• GamesIndustry.biz: Delivers daily news, insight, and analysis on the global video gaming industry, with a strong focus on business and development. https://www.gamesindustry.biz

Starting a game business involves more than just creating a game; it requires adherence to legal requirements to operate within the industry. To ensure your business is compliant and legitimate, acquiring the necessary licenses and permits is crucial. Here are some steps to guide you through this process:

• Research local and national regulations: Look into the specific gaming laws in your area, as licensing requirements can vary greatly from one region to another.
• Business license: Apply for a general business license, as it's a fundamental permit needed to legally operate any business.
• Age rating certification: Submit your game for age rating through organizations like the ESRB in North America or PEGI in Europe to ensure your game is appropriately marketed.
• Developer and publisher licenses: If you're developing for consoles, obtain licenses from console manufacturers such as Sony, Microsoft, or Nintendo.
• Trademark your game: Protect your game's name, logo, and other unique elements by registering them as trademarks.
• Export licenses: If you plan to sell your game internationally, you may need an export license, especially if your game includes encryption.

What licenses and permits are needed to run a game business?

It depends on the type of game business you are running. For example, if you are running an online video game business, you may need a license from the software manufacturer, as well as an applicable permit from your state or local government. Additionally, if you are selling products related to video games, such as merchandise or in-game items, you will likely need a business license and sales tax permit. If your business involves physical gaming activities such as arcades or tournaments, you may need additional permits and licenses specific to your location.

Starting a game business requires careful financial planning and management. An essential part of this process is to open a dedicated business bank account to keep your company's finances in order. Additionally, securing funding can propel your business forward, allowing you to cover development costs, marketing, and other expenses.

• Research banks and financial institutions that offer business banking services with benefits such as low fees, good customer service, and online banking capabilities.
• Prepare the necessary documentation, which typically includes your business registration papers, EIN (Employer Identification Number), and personal identification.
• Compare different account types and choose one that aligns with your business needs, whether it's a checking account, savings account, or a merchant services account.
• Understand the funding requirements of your game business, which may include development tools, licensing fees, marketing, and operational costs.
• Explore funding options like business loans, grants, crowdfunding platforms, angel investors, or venture capital, depending on the scale of your business and the amount of money you need.
• Create a solid business plan to present to potential investors or financial institutions, outlining your game's concept, market analysis, and revenue projections.

When setting pricing for game services, it is essential to balance profitability with customer satisfaction. Carefully consider the perceived value of your services and how they stack up against the competition. Here are some guidelines to help you determine appropriate pricing:

• Cost-Plus Pricing : Calculate the total cost of providing your service, then add a markup percentage to ensure profitability.
• Competitive Analysis : Research what your competitors charge and position your pricing accordingly, taking into account the unique features of your service.
• Value-Based Pricing : Set prices based on the perceived value to the customer, which may allow for higher price points if your services offer unique benefits.
• Dynamic Pricing : Consider using dynamic pricing models that adjust based on demand, time of day, or special promotions to maximize revenue.
• Freemium Models : Offer basic services for free while charging for premium features or enhancements to attract a broad user base and monetize engaged users.
• Customer Feedback : Gather feedback from early users to understand their willingness to pay and adjust your pricing strategy accordingly.

What does it cost to start a game business?

Initiating a game business can involve substantial financial commitment, the scale of which is significantly influenced by factors such as geographical location, market dynamics, and operational expenses, among others. Nonetheless, our extensive research and hands-on experience have revealed an estimated starting cost of approximately $300000 for launching such an business. Please note, not all of these costs may be necessary to start up your game business.

Launching a game business requires careful selection of equipment and supplies to ensure a smooth operation and an exceptional customer experience. From the latest gaming consoles to high-quality gaming accessories, every item you choose should resonate with the needs of your target audience. Here's a guide to assist you in acquiring the necessary equipment and supplies:

• Identify Your Gaming Platform: Decide whether you will focus on PC gaming, consoles, or a mix of both, and purchase the appropriate hardware.
• Invest in High-Quality Accessories: Acquire durable controllers, headsets, mice, keyboards, and other peripherals that can withstand frequent use.
• Consider Comfort: Buy comfortable furniture for your customers, like gaming chairs and desks, to enhance their gaming experience.
• Software Licenses: Ensure you have the necessary licenses for the games and any software needed for running your business.
• Maintenance Tools: Have a set of tools and cleaning supplies on hand to maintain and clean your equipment regularly.
• Bulk Purchases: Look for bulk purchase options or wholesale prices to save on costs for items that are frequently replaced, such as cables or disposable accessories.
• Networking Gear: Invest in reliable networking equipment with fast internet speeds to support online gaming without lags.

List of software, tools and supplies needed to start a game business:

• Computer Equipment: A laptop or desktop computer with a powerful processor, high-end graphics card, and lots of RAM for heavy multitasking. Price range: $1000-$3000.
• Game Development Software: A software like Unity 3D or Unreal Engine 4 with additional software such as Adobe Photoshop and Audacity. Price range: $100-$600.
• Game Art Assets: A library of images, music, and sound effects. Price range: $50-$300.
• Voice Over Artist: Someone to record dialogue, narration, and sound effects. Price range: $50/per hour.
• Web Hosting Account: A reliable web hosting account with ample storage space for game uploads. Price range: $10-$30/month.
• Marketing Tools: Facebook Ads Manager and Google Adwords for promotions and analytics. Price range: free to several hundred/month.
• Payment Processing Service Account: An account with a payment processing service to accept payments on your website. Price range - depends on the processor.
• Customer Support System Account: An account with a customer service system to help manage customer inquiries. Price range - depends on the system used.
• Legal Advice Through An Attorney or Law Firm: When starting a business you'll need legal advice and assistance when needed.Price range – varies depending on services needed.
• Testing Equipment (optional): An assortment of gaming controllers, joysticks, headsets and other gaming related hardware can be useful for testing the game during development.Price range – varies depending on product chosen."

Starting a game business is an exciting venture but it's important to protect your investment. Adequate business insurance can shield you from unexpected events that could otherwise jeopardize your operation. Below are some key considerations for obtaining the right business insurance for your game business:

• Identify the types of risks your game business faces, such as intellectual property infringement, cyber attacks, or customer lawsuits.
• Research different insurance providers to compare coverage options and premiums. Look for companies that specialize in entertainment or technology sectors.
• Consider general liability insurance to cover injuries or property damage related to your business activities.
• Investigate professional liability insurance if you're offering consulting or design services within the gaming industry.
• Protect your intellectual property and digital assets with a policy that covers copyright infringement or data breaches.
• Assess the need for property insurance if you own a physical location or hold valuable equipment.
• Consult with an insurance agent or a legal advisor who understands the gaming industry to ensure you get comprehensive coverage.
• Keep in mind that insurance requirements may vary by location, so check your local laws and regulations.

Now that you've set up your gaming services, it's time to attract players and build a community around your brand. Effective marketing is crucial to stand out in the competitive gaming industry. Here are some strategies to get the word out and draw in your target audience:

• Utilize Social Media: Create engaging content on platforms like Twitter, Instagram, and Facebook to connect with gamers. Use hashtags, join conversations, and share updates about your services.
• Content Marketing: Start a blog or a YouTube channel to provide valuable content such as game tutorials, industry news, and behind-the-scenes looks at your services.
• Community Engagement: Engage with online gaming communities on forums like Reddit or Discord. Offer exclusive deals or beta testing opportunities to members to generate buzz.
• Influencer Partnerships: Partner with gaming influencers who can showcase your services to their followers. Choose influencers whose audience aligns with your target market.
• Online Advertising: Invest in online ads using Google AdWords, Facebook ads, or other advertising platforms to reach potential customers based on their interests and browsing habits.
• Email Marketing: Collect emails through your website and send out newsletters with updates, promotions, and personalized offers to keep your audience engaged.

Expanding your game business is a critical phase that requires careful planning and execution to stay competitive in the dynamic gaming industry. Consider these strategic steps to ensure you're growing your business effectively and sustainably.

• Explore New Markets: Research and target new demographics or regions that have potential for growth. Localization of your games can also help tap into international markets.
• Enhance Game Portfolio: Regularly release new games or updates to keep your audience engaged. Consider diversifying game genres to appeal to a broader player base.
• Monetization Strategies: Experiment with various monetization models such as in-app purchases, subscriptions, and ad integrations to maximize revenue.
• Partnerships and Collaborations: Form strategic partnerships with other game developers, publishers, or digital platforms to co-create content or cross-promote games.
• Community Building: Invest in community management and social media to build a loyal fanbase that can provide valuable feedback and word-of-mouth promotion.
• Technology and Innovation: Stay ahead of the curve by investing in emerging technologies like AR/VR, AI, and blockchain to create unique gaming experiences.
• Marketing and Promotion: Strengthen your marketing efforts with targeted campaigns, influencer collaborations, and presence at gaming conventions and events.

The Basics of Game Development For Businesses: Design, Develop, Support and Promote

Games are the tools of change that are transforming our society. There are many reasons you would want to create your own game, whether it is to push your brand, raise awareness or even incite change within your community. This blog is only a small part of a much larger resource that you can download for FREE today - our eBook on Creating Games that Solve Problems.

Before venturing into game development for your business, let's start with the basics:

What is Game Development?

Game development is a combination of software development, creative production, psychology, business, marketing, and subject matter expertise. There are many different perspectives working together towards a common goal which sometimes conflict, so you need great project managers and communicators on your team. 

Before you even consider taking the leap, here’s some practical advice for anyone considering making a game, or hiring a team to make your game - Everyone should be willing to compromise and understand where expertise lies. Listen, be open-minded, and be keen to collaborate!

The stages of game design and development, as well as the timeline, depend on the scope and intricacies of the project. However, the following fundamental stages run the same across projects of all shapes and sizes:

Although this shows the stages of game development as linear and possibly rigid steps, in reality, the process is iterative with constant changes to the design to refine the player experience.

Now that you can better visualise the process for game development, and have an informed understanding of the the development timeline - it’s time to dive deeper in to each stage. 

Most games go through a three-step process - Design, Deliver and Iterate . I’ll break down what each step looks like from starting with concept and pre-production in the Design stage. 

‍ What really goes into Game Design?

Before starting with a precise project scope (i.e. how much work is involved in building a game), you must first create a game concept and establish the pre-production details.

The most important question you need to ask at this stage - Is my concept or idea achievable with the team and resources I have?

The best way to answer this question is by starting with an objective and defining the problem that you are trying to solve, not the game that you want to build. Once you’ve clearly defined the problem you aim to solve, then you can then look for a style of game that aligns with this objective, instead of the other way around. For example, if you want students to be more interested in astrophysics, then you’d probably want to create a game that has rocket and space simulations.

Just like in the example, the main objective is to create a transformational game that will resonate with your target audience and have gameplay that aligns with the solution. This means you need to understand the core of the experience and how your game will be both fun and effective.

It’s a good idea to look at other games or real-world experiences for inspiration in this phase, so brainstorming is your best tool.  There are so many game styles and genres out there which may be suitable for solving your problem, so spend the time to explore the possibilities.

In addition, here are elements in the design phase that are critical to the success of any project:

• Target audience - Understanding exactly who you are making this game for is a critical step which can be undervalued. It is better to be specific rather than vague as testing with a small but targeted group will make design iteration easier. Whilst selecting an audience that is too broad will lead to conflicting feedback and ultimately a disjointed end product. 
• Key Performance Indicators (KPIs) - This step focuses on  real-world metrics that you care about impacting. Being specific from the beginning will help shape the design and let you know when you have achieved your goals.
• Technical requirements - From the start, you should identify technical requirements and conduct research on how it will impact your project. Does it need to be compatible with various tools? Does it to adhere to to proper security standards? These requirements will shape the overall design of your project, so ensure you identify them as early as possible.
• Market Validation Plan - How do you plan on validating the actual need for your game in the market? Your project might be based on the best research and assumptions about the audience, but it is important to test those assumptions to ensure that your project will succeed long-term in the real-world.
• Maintenance and support - It is important to establish ongoing work to support and maintain the game once it has been launched. The timeline post-release needs to be accounted for during early planning to make sure that you can reach your end goal. 

Game development is more than code and numbers!

Now that you’ve come up with an exciting concept and completed pre-production, it's time to move to the Development stage. As mentioned, this entire process is iterative, you should aim to test your ideas with the end user as early as possible to ensure that it is both fun and effective. This may mean throwing out some earlier ideas or changing your design to account for new information. This may seem like wasted work but in the long run this approach forces you to focus on creating a game that is the best fit for your target audience and sets you on the best path to reach success. 

Don’t become too attached to designs from the early stages of the project, you might discover new and better versions later on! This is all part of iterative design.

This can be summarised in an adaptive four-step process of Concept, Prototyping, Playtesting and Evaluation, together known as the iterative process. The stages of this process are focused on who is your intended player base, testing your game with the right players and progressively validating your design with a broader audience at every stage:

Development is broken up into different milestones based on progress and the test group. Pre-alpha is when you are creating a prototype and don’t yet have a playable version of the game. Alpha is when you have a version of the game that you can test internally, either with your team or small groups of testers from your target audience. Beta is when the game is being tested by users outside of a controlled testing environment and is typically a larger group than Alpha. And finally, Gold is the version of the game that you release to the public as the first official launch. 

During each of these stages you will be adding features and content to the game to move towards a more complete experience. In general it is best practice to work in milestones, focusing on a small number of features that will deliver an impactful experience - rather than building all features at the same time. Testing the game with users at the end of each milestone will show you if the features are working as expected, or if they require additional refinement. 

The “Project Scope” is describes all of the features, functionality, and content that is going to be in the final game. While “Out of scope” consists of all the great ideas that you don’t have the resources to implement. It is worth identifying what is within project scope and what is out of scope because there will always more great ideas than time to implement. You and your team must be open to following an iterative process and adapting the project scope to incorporate new ideas whilst dropping redundant ideas.  

Here are tips for managing the scope of your project when working with an external developer:

• Understand that 25% of the game is not developed in 25% of the time. Think of game development like building a skyscraper. There is a lot of work involved in the design and engineering before work starts. Before  work begins you need to lay the foundations and only then can you start building levels on top of it.
• This skyscraper analogy also applies to changes in scope as the project progresses. The further along in the building process you go, the harder it is to change the foundations. If you want to change an early feature you may be required to undo a lot of early work to make that one change. 
• Be honest about what you like and dislike. It is easy to change things early. Don’t hold your feedback until the end of the project because it will be much more work to change the design later. 
• Always ask your developers about how much work is involved , it isn’t always obvious what is easy and what is hard to implement.
• Make sure that you are managing risk. A lot of innovative mechanics and systems are great, but these will have unforeseen impact on the scope. If you are working on an innovative project then have flexibility in your budget, or be willing to cut features later down the track.
• I would suggest doing significant research into what other games already on the market. Look into how they approached similar problems and you can potentially learn from their mistakes . 

Game development is an iterative process (trust it!)

You’ve finally finished production and launched your game! But the work shouldn't stop here. New features and content updates for your game can be distributed to your players post-release. Launching your game is a massive milestone and with that comes access to a wealth of data on player engagement and performance. Post-release development allows you to refine the game’s efficacy to maximize impact. 

Depending on the type of game, you may also need to perform maintenance to keep the game working as intended. Even an offline game will require minor updates to support new hardware and software standards. This may be a comparatively small cost but should be accounted for if you want your game to have an impact for years to come. 

The three most common forms of maintenance are corrective, adaptive and perfective:

• Corrective maintenance handles software and hardware updates and minor bugs, this generally happens immediately after release.
•  Adaptive maintenance is when a developer has to update the game's software core to accommodate an overall system update. For example, if a new iPhone with unique dimensions is released, your game’s software might need to be updated to optimise performance. 
• Perfective maintenance is the constant updating of a game over time to improve the overall impact. 

In general, perfective maintenance will take up most of your post-release time (an average of 60% of your maintenance budget), followed by corrective maintenance. It is important to collaborate with developers who can work seamlessly to minimise interruptions to your users!

What's the point of making a good game if no one knows it?

Finally, a stage that I did not mention in the beginning but one that is just as important as the actual design and development of the game: Marketing. 

Marketing and promoting your game is often forgotten. Don’t do that!

It is easy to think that people will care about your project because it is a fun and exciting game with a noble purpose. In my experience, this is very rarely the case. If you fail to communicate your game’s purpose and connect with the right audience, you won’t stand out and fall short of reaching your goal to create change.

Depending on your project scope, the audience, and purpose, marketing may require more or less of your time, but it should be considered and planned out.  

Sending an email to your mailing list when the game is launched isn’t enough. Create a marketing plan with the goal of reaching and engaging your potential players. Which marketing activities are you going to focus on? What deadlines should you marketing campaigns meet?

Ideally start the marketing planning early, long before the game is finished and launched. Make sure that you are promoting your game long after its release.

The common trend between all of these marketing activities is that you need to understand your audience, and understand how to best communicate with them. 

Remember, just like game design and development need the right experts, marketing also requires a specialized skill set to execute campaigns effectively.

And that's (pretty much) it!

Practical advice to help you and your team come to the right decisions and schedules in order to make it a reality. But there’s still plenty to know and learn! The rewards for creating games for change or social impact games are well worth the efforts.

Although this process  of designing, developing, iterating and then marketing a game can seem daunting,  Chaos Theory is equipped with the knowledge and expertise to make your life infinitely easier. Or if you just have questions that need answering on what it’s like to make a serious game, you can book time with me and get the direction needed to help you on this journey.

Here's the ultimate FREE guide to creating serious games!

You might also like, these articles.

10 Cozy Games to Help You Survive the Holidays

15 Ground-Breaking Video Games Modernising Healthcare

Crab God has Launched! Praise the Claw!

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How to start making a game (a guide to planning your first project)

In Project Management by John French Published 19 Apr 2022 Updated 29 May 2024 25 Comments

So… you’ve decided that you want to make your game.

Maybe it’s something you’ve been thinking about for a while and you feel like now’s the time to really go for it.

Or maybe you’ve only just started to get into game development, but you want to start by making something that’s yours.

Either way, now is a great time to get started, as there are a huge amount of resources available to help you to build your first project.

Learning how to use Unity, for example, and how to create certain kinds of functionality, while it’s not always simple, can sometimes be relatively straightforward.

If you have an idea of what it is you want to do, an example, or a tutorial can probably show you how to do it.

A lot of the time, the hardest part of making a game isn’t making one part of it, it’s knowing what the parts will be and how to put them together.

And actually starting your project, deciding what you will make and planning how you will make it, can sometimes be a bigger challenge than technical obstacles, such as learning to code.

But don’t worry.

In this article, I’ll show you some useful strategies and techniques that you can use to turn an idea for a game into a real project that you can work on.

Here’s what you’ll find on this page:

How to choose the right game idea

How to develop your game idea, how to plan your game project, how to manage your game project.

Let’s get started.

How to start making your first game

If you’re interested in making a game, chances are you will have already tried one of the many Unity tutorials, or an example project in another game engine, so that you can learn some of the basics.

And that’s a great place to start.

Working on smaller projects, such as tutorials, personal experiments or game jams, can be a great way to pick up skills, experience and familiarise yourself with the software you’re using.

However, moving on from tutorials to a real project of your own can sometimes be a challenge.

So how can you do it?

How do you actually start making your game?

Generally speaking, there are three steps to starting your first game:

• Choose an idea that plays to your strengths and minimises your weaknesses.
• Keep your project small and simple.
• Break it down into bite-sized tasks that you can work on bit by bit when you have the time.

However, there’s no one right way to do this.

While I’ve worked hard to make this article as helpful as possible, I don’t claim to be an expert and how useful a particular technique is will depend on you and how you like to organise your work.

So I’d encourage you to take what’s useful from this article and ignore anything that’s not a good fit for you.

However, if you’re a beginner, and you’re not sure where to start, then these techniques can help you to make the jump from a game idea to a game project. 

So what’s first?

Before you start working on your project, you’ll need to decide what it’s going to be.

If you want to make a game, chances are that you already have an idea of the kind of game you might like to make.

Maybe you have several ideas.

Maybe you don’t have any.

Or maybe you’re just not sure if an idea is worth pursuing or not.

While it’s not my place to tell you what you should make, I can show you, as a beginner, how playing to your own strengths can make building your first game a lot easier to do.

Making a game can be hard, so the trick is to shift the balance of difficulty in your favour, by making use of the skills you already have and avoiding areas of work that you’ll find difficult.

So how does it work?

How to play to your strengths and limit your weaknesses

Everyone has a unique mix of experiences, skills and resources, from their work, from their hobbies and from their relationships and life experiences, that make up who they are and what they’re capable of doing.

As a result, your strengths, your experiences and your skills, will be different to anyone else’s.

Some of these strengths could be very obviously valuable to game development while others, although equally useful, you might not even realise you have.

But, whether you feel like you have skills to use or not, your particular mix of experiences can be an advantage over other people in certain situations.

What this means is that, understanding what skills you do have, regardless of if they seem relevant or important, can help you to choose a game idea that is more achievable for you, even as a beginner, than it would be for someone else.

For example, you might already have technical experience from your work or from hobbies.

Or maybe you’re creative, you like to draw or write stories.

Or maybe you already work in a game development discipline, working in testing, community, project management, all hugely valuable skill sets in their own right.

Picking a project that leans more heavily on the skills that you have, and less on the ones that you don’t, can make your first project easier to work on and easier to finish.

For example, if you’re not familiar with scripting, don’t choose a game idea that will require complex scripting to work.

If you can’t draw or model characters, don’t.

Use cubes, or other basic shapes.

However, if you do have skills that others don’t, then don’t be afraid to use them.

If you can write a good story, and so many people, myself included, can’t, use that skill to make a more engaging game.

Or, if there’s something that you know a lot about, from your work or from your hobbies, even if it doesn’t seem like it could be a game, make a game out of it!

You’re much more likely to make something that’s enjoyable if you already understand what’s enjoyable about it.

Which is why knowing what you know, and accepting what you don’t, can help make the large task of building a game much, much smaller.

But what if you don’t know what your strengths are?

How can you work out what your advantages are and how they could be useful?

How to work out your strengths

One method of working out what your strengths and experiences are, and how they relate to your idea for a project, is to simply write them out.

First, make 3 lists:

• What am I good at?
• What do I like doing?
• What advantages do I have?

Then, under each list, write out what you know about yourself:

First, list what you’re already good at.

It doesn’t matter if it’s related to game development, if you’ve got a skill, or some experience, or some weird party trick, write it down here.

Next, write down what you like doing.

Add your hobbies, your interests, generally any way you like to spend your free time.

This can include new things that you think you’d enjoy learning, even if it’s not something you can do today.

Lastly, write out the advantages of your specific situation.

For this, try to think of any part of your life that is beneficial, such as free time, disposable income, supportive friends and family, youth!

Anything that you can think of that gives you some kind of headstart goes in this list.

Then, analyse your idea

Once you’ve listed your strengths, write out what you think will be involved in making your game idea.

These are the things that you will need to be able to do to actually build your project, such as making 3D models, writing a story, artwork, game design, etc.

Write them all down, in order of importance if you can.

Once you’ve listed the areas of work required to make your game, compare that list with your three lists of strengths.

Score each requirement using a colour:

• Green: If you have experience in that area.
• Orange : If you have less experience, or none but are willing to learn.
• Red: If you have no experience or ability to meet that requirement.

Compare what you’ll need to do to make your game (on the right) with your strengths (on the left) and score them with a colour to reveal trends.

This will help you to understand where your experience and your interests overlap with the task ahead.

Different game ideas will require different skill sets.

Some might be easy for you, while others could be tricky.

Such as multiplayer, or artificial intelligence, which could be difficult, or impossible, for you to get working as a beginner.

However, sometimes the easiest way to overcome a large obstacle is to simply avoid it in the first place.

And, while the point of this exercise isn’t to try to think of an idea with all green boxes.

It can help you to understand what tasks are ahead and how difficult they might be for you.

Not to put you off, but to help you predict what the biggest challenges will be.

And, if you have multiple ideas to choose from, a project that has more green and orange requirements than red is likely to be easier for you to work on and finish. 

Once you’ve settled on an idea that you feel you can achieve, it’s time to work out just how big, or small, your game is going to be.

At this point, you’ve thought about your idea for a game and what making it might involve.

What’s next is to take that idea and turn it into something real by planning a minimum viable product.

So, what is a minimum viable product, and how can it help you?

What is a minimum viable product in game development?

Typically, “minimum viable product” is a product development term used to describe the first version of a product or service, that’s usable enough to provide early feedback from users, but basic enough that it can be made quickly and modified easily.

When developing your game, the minimum viable product approach can help you to decide what the scope of your project will be.

Which is useful, as it makes the task of building your game clearer and more specific.

So what makes a minimum viable product?

There are two key characteristics to a minimum viable product:

• It’s the most basic version of your game that can exist that still fulfils the description of the idea.
• It’s shippable, meaning that what you make has enough value that it could be released as a playable game.

Working towards a minimum viable product forces you to think in terms of only what is essential to the concept of your game.

Which is helpful, because it will encourage you to focus on what’s actually important, allowing you to ignore anything that isn’t a core part of your idea, making the project smaller and easier to finish.

In fact, when using this approach, your project might be a lot smaller than you think.

For example, sound effects… probably not important.

Music… probably not important (and I say that as someone who works as a game composer ).

Artwork… still probably not important to the definition of your game idea.

Now, you might be thinking “of course these things are important!”

And yes, absolutely, art, music, sound and many other features that I might describe as optional in this article do make games better and more enjoyable.

Of course they do!

But, they are not the game if the game can exist without them.

Remember that a minimum viable product is the most basic version of an idea.

And, when thinking about the absolute most basic definition of what your game is, they may be optional extras.

For example, consider a platform game.

A platform game doesn’t need to be complicated to be enjoyable or engaging.

Fundamentally, a platformer is the player moving an object and making it jump, as well as some kind of hazard or obstacle that makes the moving and the jumping necessary.

Probably platforms.

And that’s it, that’s what the game is.

Anything else is an extra feature, meaning that it might make the game better, but it doesn’t make the game what it is.

Music, sound effects, artwork. You could take all of them away and the game would still be there.

But, take away the moving and the jumping, and there is no game.

And no amount of art, or music, no matter how good it is, can change that.

Minimum Viable Product vs Vertical Slice

A minimum viable product involves limiting your project’s scope, so that the amount of time between starting to build it and actually getting it into the hands of players is as short as possible.

The vertical slice, however, is generally a more advanced stage of development that typically involves adding many, if not all, of the features that are planned for your project, but limited to a small section of the game such as a single level.

While a minimum viable product can be useful for getting your core gameplay right by avoiding everything else, a vertical slice can help you to refine what your game will be when it’s finished by adding everything else back in again.

Which is useful, as it allows you to bring all of the moving parts together before building out the game’s other levels and content.

Is all of this really necessary?

This process can be quite difficult, so is it really necessary to think about your game like this?

There are many games that could be considered to be defined by the very features that, in this process, would appear to be unimportant. And, when imagining your game idea as a finished product, you probably already have strong ideas about what the game should be like.

What it might look like, or sound like, or how it might play.

Which can make disregarding so much of that idea as unimportant, a hard thing to do.

So, for this reason, it can help to imagine that the minimum viable product definition of a “shippable” game,  means that the project is playable in its own right. For example, you could export it as a build, send it to a friend, and they could play it without any special instructions from you.

The game might only be one level, it might be horribly ugly, and completely silent. 

But you could play it.

So it’s not necessarily the case that you must only build the minimum version of your game.

Instead, try to think of your minimum viable product as the thing you should build first, before you do anything else.

Then, you’ll be able to add extra features that enhance the experience of the game, later on.

However, if you can’t make your game, now, without those extras, then that may be a sign that your game idea doesn’t focus enough on what the player will actually do when they play your game.

In which case you’ll likely need to go back a step and rethink your idea.

If you can identify only what is important to your game idea, and ruthlessly cut out everything else, if only for now, you stand a much better chance of building something that is engaging and fun.

And if it’s not fun, you’ll find out much, much sooner.

So how can you work out what your minimum viable product should be?

Here’s how to do it…

How to work out the minimum viable product for your game

To work out what your game idea’s minimum viable product should be, ask yourself the following two questions.

1. What will the player do to play your game?

This should be a single, specific statement that explains what playing the game is.

The focus is on doing, not experiencing so, while there are some games that are experienced more than they are played, try to think only in terms of what the player can directly control.

Write it down, this is your game’s core concept.

For example, for a simple spaceship game, the concept might be to collect points without crashing:

The core concept of your game is what the player will actually do to play it.

2. What features or mechanics must exist to enable this to happen?

Write down any feature that absolutely must exist to enable someone to play the game in the way you’ve described in the core concept.

In this example, the player will need to be able to move the ship and collect points, there will need to be damage if they hit an obstacle and, to enable any of that to happen, there will need to be a way to start and end the game:

Next, think of the basic features that must exist to deliver the core concept.

The trick here is to mercilessly and brutally reject anything that doesn’t directly enable the game’s concept to happen.

This won’t be easy…

Chances are, you will have already imagined certain art styles, story elements, extra features, mini-games and all kinds of charming features that you were looking forward to making for your game.

However…

If you’re serious about starting a project that you can finish, you may need to leave out anything that doesn’t directly contribute to the core idea of your game, at least for now.

But how can you know what that is?

Following this process, it can sometimes be unclear if a feature of your idea should be included in the minimum viable product or not.

There will no doubt be edge cases, where something feels like it’s vital, but it may not be.

In these scenarios, simply ask yourself:

“If I shipped the game without this feature, would the core concept description of the game still be possible?”

If the answer is yes, then the feature is not mission-critical and you can save yourself time, money and effort by simply not doing it.

It won’t be easy and, if you’re anything like me, you will probably try to sneak some of your favourite features back into the concept.

If you can be ruthless, and if you can cut out everything that’s not vitally important to your game, you’ll be able to focus all of your energy on what is important instead.

Which can make the game better to play, and easier for you to make.

But how will you make it?

Once you have an idea, and once you’ve decided where that idea starts and ends, how can you go about building it?

Once you’ve worked out what features need to exist to make your minimum viable product, you can start to plan how you’ll make each part.

However, each area of work, as a task, is much too large and too vague for you to simply start working away at it.

Which, if you only have limited time available to work on your project, can be a problem…

If a task isn’t specific enough for you to know where to start, or what it should look like when it’s finished, it can be difficult to make any kind of meaningful progress when you do get the chance to work on it.

This is because you’ll probably spend most of whatever time you have trying to figure out where you left off and what you need to do next.

So, in order to get the most out of the time you have set aside for making your game, and so that you can make consistent progress on your project more easily, you’ll need to break the large tasks of your project down into smaller pieces.

Obviously, this isn’t a new concept.

Breaking down a big piece of work into smaller chunks is an effective way of simplifying what you’re trying to do and allows you to make steady progress in a large project more easily.

However, while that’s easy to say, it can actually be quite difficult to do in practice.

How, exactly, do you break down a big project into smaller tasks?

One method is to divide each large task into two or three smaller parts first, after which you’ll be able to break each subdivision down further and further until it’s specific enough to work on easily.

Keep in mind that this is just one way that you could approach this, so I’d encourage you to explore whatever method makes the most sense to you and what you’re trying to build.

However, if you’re stuck, this technique is simple, it’s easy to try, and can be a good way to get started.

Here’s how it works…

How to split up your game project into small tasks

Start with each of the broad features that were identified in the minimum viable product stage , such as Player Movement , for example.

Then, to break it down, ask yourself one question about that feature…

Is this one task?

If it’s not, and it shouldn’t be yet, you’ll need to divide it into smaller parts.

Now, this is where it gets tricky.

It can sometimes be difficult to know how to split up a large task, either because you’re not sure exactly how the feature is going to work, or you’re not sure how small to go when you’re dividing.

So, to split the task into appropriately sized chunks, follow this process:

First, take the core concept and divide it into the largest chunks that you can.

This will mean that each divided part is probably still quite vague and non-specific.

What’s important, however, is that each division is unique, meaning that it is different from the other divided parts.

As much as possible, the divided parts shouldn’t overlap with each and, if you added them together again, they should form the whole feature they come from, without missing anything out.

When dividing tasks it can be easy to go too small too soon. The trick is to divide each large task into only slightly smaller parts that still make up the whole when added together.

Next, for each of the divided parts, ask yourself the same question again…

Again… it probably still isn’t, and probably still shouldn’t be, but repeating the process will reveal more and more specific areas of work until you can reduce a large, vague, objective into a number of actionable tasks.

Try to reduce each feature down far enough that you have a list of tasks that are specific enough to work on:

Keep dividing each task until it’s specific enough for you to work on easily.

By repeating the process for every feature and sub-feature in your project you’ll eventually end up with a list of individual tasks that are each simple enough to work on but, when combined, roughly add up to a full game.

And while this process isn’t perfect, and while you’ll often have to reconsider sections of work you may have missed or systems that may be dependent on each other, reducing down the challenges of your game in this way can be a useful way to start identifying the actual work involved in making your project, so that you know what to do when you sit down to work on it.

But which tasks will you work on first? 

And how will you keep track of them?

Once you know what you want your game to be like and how you will make it, you’ll need to actually do it, and keep doing it, until it’s finished.

Which can be challenging, especially if you’re making your game in your free time.

So how can you manage your project, and yourself, to make working on your game as easy and efficient as possible?

There are many, many different ways to manage your time and you may already know what works best for you.

However, one method is to manage each task as if you’re giving it to someone else.

Even as a team of one, you’ll be taking on multiple roles in your project.

You’re the project owner, the manager and the developer.

And while being all of those things at once can be helpful, as it allows you to work in an extremely flexible way, sometimes, the easiest way to work is by following a clear brief, that’s been given to you by someone else.

Which is why it can be useful to separate the task of managing your project from actually working on it.

Here’s how…

To manage the tasks of your project, you’ll need a place to write them down.

You can use whatever system you want for this, however, for this method to work, you should be able to make notes for each task and easily organise them so that you know what’s done, what’s not, and what you plan to work on next.

One option is to use a tool like Trello , which is a Kanban project management tool that works using Lists and Cards.

In this example, I’ve used Trello to organise the four areas of work required to create the game’s minimum viable product.

It’s the tool I use to manage every music project I work on and every post I write on Game Dev Beginner.

Here’s how to use it to manage your project.

How to keep track of your game’s development (using Trello)

Make a list for each category of work that you identified in the minim viable product stage earlier in this article.

Then, at the top of each list, add a card to make any notes about the functionality of that feature as a whole, such as how it should work.

Then, for each specific task, add a short description to explain what the feature you’re building should do, how it will be used and what type of information will be passed in or out of it.

Giving yourself clearly defined tasks can make it much easier to work on your project.

At this point, you’re basically delegating work to yourself.

Which means that, if you want to be a good manager, taking the effort to write a clear brief for each task will make your employee’s job much, much easier.

After all, you want them to keep turning up, right?

So how can you make sure the task briefs you leave yourself are specific enough?

One method of writing good tasks is to use SMART goals as a guide.

What’s SMART ?

SMART is a project management mnemonic that describes the different elements of a well-managed task.

It stands for:

Specific means that what you’re supposed to create or do is clearly described. 

When you’re giving yourself a task, and you want it to be specific, write it as if someone else will read it. This can help you to include details that are comfortably in your head today but that you might forget by the time you come to work on the task.

Future-you will thank you for it.

Measurable means that a task can actually be finished. It’s how you will know when to stop working on something and how you will measure if it was successful or not.

To make a task measurable, ask yourself “How will I know when this task is done?”

Achievable means that you have the ability and the resources to carry out the task you’ve been given.

As a beginner, there may well be tasks that you don’t know how to do yet, in which case making a task achievable can be as simple as recognising the research you will have to do first, either as another, separate, task or as part of the task itself.

Relevant is how the task fits into the bigger picture of your project.

For you and your game, keeping a task relevant can be as simple as making a note of your future plans for a given feature. Such as if something that will affect how this task works is likely to be changed later on.

Lastly, Time-Bound refers to when the task needs to be done.

Traditionally, this might be the deadline for the task.

However, while you may find having a deadline for your project helps you to stay focused, it can also cause unnecessary stress so it’s up to you if you think placing a timescale on each task is helpful or not.

However, Time-Bound doesn’t only mean when a task needs to be finished.

It can also mean the order that tasks need to be worked on, as there will likely be some systems and pieces of functionality that need to exist before others can be built.

In which case, making a note of a task’s dependencies, if it has any, can be useful.

Motion vs Action

While planning what you will do before you do it can be extremely useful, it is also possible to spend too much time preparing and not enough time doing.

James Clear, author of Atomic Habits, describes this as motion vs action , where motion is typically planning and preparation while action is the behaviour that leads to results.

In this case, building your game.

While planning is important, it’s also possible to spend all of your time in motion, which can make you feel like you’re moving forward, when you’re actually not doing anything.

To avoid getting stuck in motion, it can help to schedule time that is just for action, so that you can get on with the task of actually developing your game.

Working on your project piece by piece

Together, the list of tasks that you’ve created should, for the most part at least, represent the backlog of work you’ll need to do to create your minimum viable product.

Meaning that, if you can do all the tasks on your list, you should have a working project that you can start to refine and expand into a finished game.

But, in order to get to that point, you’ll need to be able to work through the backlog of tasks, which means that you’ll need a way to keep track of which tasks have been finished, and which are in progress.

If you’re using Trello, or a similar system, you can do this by adding a Doing list and a Done list to the Trello board.

You may also want to add a Notes section to the Doing list, so that you can leave yourself reminders about what you were working on.

This can be extremely important.

If your time is limited, it’s unlikely that you’ll have the luxury of neat and tidy stopping points between each session working on your project.

Which means that you may need to leave something half-finished or broken.

Keeping track of what you were working on, and having a place to leave yourself some simple instructions, can save a lot of time and confusion.

While being able to clear tasks off of your Doing list into the Done column can help you to focus on what’s still left to do.

Agile project management in game development

If you have regular time to work on your game, you may find it helpful to consider your doing list as a specific unit of time, such as an hour, an evening or a day, whatever amount of time you have available to work on your game.

Then, when planning what you’ll do in that time, only move the tasks from your backlog into your Doing list that you expect to get done in that amount of time.

In Agile project management frameworks, this is a sprint, and it typically involves choosing a number of tasks from your backlog that will be completed during the sprint window, after which you’ll be able to assess what was finished, what wasn’t and why.

While this is an over-simplified description of what Agile project management is, it can be extremely useful to manage your doing list in a way that reflects the amount of time you actually have available to work.

Only adding what you expect to get done can prevent your doing list from becoming a 2nd backlog, filled with tasks that you haven’t gotten round to yet and are, therefore, not actually doing at all.

While being able to see what you could or couldn’t get finished in each window of time can help to highlight tasks that keep hanging around, in which case you’ll probably need to go back to that task and break it down further.

Turning vague objectives into specific, actionable tasks can be a tricky process, so don’t be surprised if you find you need to start this process over a couple of times before getting it right.

However, the reason it can be difficult is also why it’s important.

Breaking down the different moving parts of your game into specific tasks encourages you to think about how they will need to work, which means that you may need to make decisions about your game that you hadn’t even thought about yet.

And while this isn’t meant to be a design process, and while you certainly shouldn’t try to plan every detail of your game in advance, it will at least reveal the parts of your game that aren’t specific enough to build yet, forcing you to think about how they might function before you try to work on them.

Which, for the purpose of helping you to turn your game idea into a project you can actually work on, can be extremely useful.

Now it’s your turn

Now I want to hear from you.

There’s no one right way to manage a project, so I want to hear your best advice.

How do you turn vague ideas into specific tasks? 

How do you keep track of what you’re working on?

And what have you learned about organising a game project that you know others will find useful?

Whatever it is, let me know by leaving a comment below.

by John French

Game audio professional and a keen amateur developer.

• johnlfrench
• johnleonardfrench.com

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My all time fav website Thanks for informative articles

Thanks so much!

Very helpful John! Appreciate how informative this is – You’ve put things I’ve heard elsewhere and put it all together and added more to it – fantastic!

Good timing for me as I’ve finished and shipped my game 2 days ago and will be planning for my next. Your writing is very helpful for ‘Intermediates’ and not just beginners! (ps. If you’re willing, I can put a link to my new game, but don’t want you to feel I’m spamming 🙂 )

Thank you, I’m so glad it helped. What’s the name of your game?

Thanks John,

Scapegoat (Available on Steam for PC & Mac, Google Play and the App Store)

https://store.steampowered.com/app/1914240/Scapegoat/

Thanks for sharing this information.

You’re welcome!

I’m a 14-year-old student who dreams of becoming a game planner Your writing helped me a lot Thank you.

Happy to help!

thanks for this, I’ve got a few ideas, but I’m moving to unity. I can and have made hobby stuff from c64 machine language to stuff in game maker, it’s always been others ideas or copies of existing stuff. This idea (one of the 3) seems the least daunting, but don’t know were to start. Guides like this give you some direction when your drawing a blank on were to start. Appreciate your time typing this up and it’s definitely bookmarked. If you have any other tips, tricks or useful urls I’d be glad to check them out. Keep up the good work.

Thanks Paul! I’d recommend Extra Credit’s ‘How to start your game development’ video, if you haven’t already tried it: https://www.youtube.com/watch?v=z06QR-tz1_o

Great Article! Keep up the good work.

I’m starting on a project developing a game with some friends, and have already worked in other industries as a Software Engineer. I really appreciated the section about breaking down and defining the MVP. I do struggle a lot with it, and I have to say you gave me a lot of insight on my own process, and it inspired me to do better. Thanks!

The biggest advice I’d care do share and add to your great article is this:

When creating tasks, add a “Definition of Done” section. This tells you how the game should look like once the task is finished. It gives you a goal-oriented look at what you are doing, and I find it helps me a lot keep track of progress and motivate myself. It makes it so much easier to shave off extra stuff that can be a separate task too.

Thanks for sharing! That’s a great tip.

I really want to learn from you thanks.

so were do I start

i love this

After reading this clear and useful guide, i am very happy and appreciate it. It is not only tell me how to start my game project, but also give so many advise to manage it, thank you 🙂

Besides, there are several points hit me and open my mind:

1. Choose the project that can make good use of my skills and avoid difficult. I always ignore the distance between the target and my ability, thus i haven’t finish one project for my own yet. That’s a good point to realize and after reading, I think i can improve next time by using the ‘green-orange-red’ model;

2. MVP in game project is to think what player directly control, it will make me focus;

3. Motion vs Action. This tell me to realize i always spend too much time in plan rather than action.

I love this guide, and thank you for working on it.

Thank you! It’s so great to hear that you found it useful!

Hello, I am a blogger as well! I found this post very informative and would like to link to this page as a resource for game devs in a post I am making? I think it adds a lot of value toward an indie ddev trying to learn how to makee and plan their projects.

This is awesome – thanks so much, this article was really useful – as an aside, here is the goal ‘path’ I use instead of SMART goals: To achieve long-term goals, we have to set short-term goals. I start by asking myself the following questions: How am I going to do this? How long is it going to take? How am I going to remember that I have this goal? Who can help me stay on track with this? How will I celebrate when I achieve it? How will I keep on going even when it seems hopeless?

I find this more useful than SMART or maybe alongside SMART – anyway, keep up the awesome work .

Thanks for sharing!

thank you for making this website

its a nice intro.. I like your talent WOW … IM unspeakable LOL

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Video Game Development Process

How successful games are made, from start to finish.

Anyone with hands-on experience in the video game industry knows the simple fact: game development can be chaotic . But while no amount of planning can fully safeguard you against production bottlenecks or impending deadlines, undertaking a game development project without a plan is a sure way to fail.

Whether you are an AAA game studio or an indie game developer, having a structured game development process is paramount. Let's dive deeper into what this process looks like.

What is video game development?

Game development is the process of developing a video game, from the initial concept to the finished product.

Depending on the game and the studio undertaking the project, this process can take anything from a few weeks to over a decade. It can involve thousands of designers, artists, programmers, writers, and testers, or be carried out by a single indie developer.

Game design vs. game development

Game development and game design are two different terms, though they are often used interchangeably:

Game design refers to the conceptual side of things: the initial vision, the mechanics, the story, the characters, the locations, and so on.

Game development is a broader term that covers game design and additionally includes the technical implementation of the game concepts.

At many smaller game development studios, the same team members wear many hats and are responsible for both fields. At larger companies, however, design and development are often handled separately.

Stages of the game development process

The game development process can be broken down into three main stages .

Pre-production

Pre-production is the planning phase. You may have an amazing idea for a game, but to successfully turn it into a reality you need a detailed plan of action.

The first step is to create a game design document (GDD). It will serve as a blueprint from which your game is to be built. Here's an example of a game design document created in Nuclino , a unified workspace where teams can bring all their knowledge, docs, and projects together. Nuclino can serve as a lightweight game documentation tool , a game development planner , an internal wiki , or a digital asset management platform for game art studios . You can create real-time collaborative docs, allowing you to document, share, and collaborate on anything, from game proposals and storyboards to character profiles and concept art.

Game design document example (Artwork credit: Stephane Wootha Richard )

Pre-production is the stage when the writers, artists, designers, and developers collaborate to determine the scope of the game. That includes coming up with ideas for how the game will function, its characters, its look, and its story. The most basic questions that need to be answered are:

What is the core idea behind the game? How can it be summarized in a compelling game pitch ?

What is the genre of the game?

Who is the target audience?

When and where does the game take place?

Who are the characters?

What is our estimated cost to develop this game?

Will we need to hire game developers or other additional team members?

How will we monetize the game?

What is our estimated timeframe for the launch?

The answers to these questions become the backbone of your game design document. Some details are likely to change over the course of the game development process – keep your GDD as a living document and let it evolve together with your project.

Game storyboard example (Credit: Ubisoft Entertainment )

During the pre-production stage, it’s also common to prototype the environments, characters, control schemes, and other in-game elements. A lot of effort is invested into worldbuilding . Ideas are fleshed out in the form of storyboards, concept art, interface mockups, and so on, to see how they look, feel, and interact with one another.

The production stage of game development is when your studio takes the concepts created during pre-production and turns them into source code and various assets. It's where the bulk of your time, effort, and resources go.

During this stage, several teams work in parallel:

Design. The design team continues their work from the pre-production stage. Working together with the artists, they render character models, craft dynamic and immersive level designs and environments, iterate on the interfaces, and so on. The designs become more detailed and granular, some ideas get refined while others are thrown out.

Programming. Even in case you decide to use an existing game development software or game engine, the programmers will have plenty of work prototyping ideas, incorporating new features, and fixing the bugs introduced along the way. If you are also planning to release an API for your game , your developer team will need to allocate enough additional resources to work on related technical tasks.

3D character model examples (Credit: Maryna Chemerys )

Art, graphics, and audio. Most games require a great number of creative assets. Artists, music composers, and voice actors need to work together with the designers and developers to make sure all elements fit together.

Testing. Making sure the game works as intended is critical. Testers don't wait till the game is finished, they start their work as soon as anything is playable. Early on, testing a game occupies a relatively small amount of time, but as development draws to a close, it requires multiple people working full-time, often relying on QA outsourcing services.

Game production process ( Nuclino )

Post-production

After the final version of the game is released, it enters the final stage of the game development process – the post-production. The main purpose of this stage is game maintenance, which mainly includes:

Bug-fixing. Despite the efforts of testers, most games still contain minor bugs at the moment of their launch. The first few months during the post-production stage are typically spent identifying and squashing these bugs.

New content. Post-production also includes regular software updates for the game, ranging from game-balancing patches to new DLCs.

No two games are the same, and even seasoned game development studios with hundreds of games under their belts often struggle with last-minutes changes, tight deadlines, creative differences, and other challenges. This is the nature of the industry. There are many things that contribute to a game’s success that are not under the developer’s immediate control. Which is all the more reason to make sure you take care of the things that are. And having a structured game development process with clear deadlines and production goals is the most straightforwards way to do it.

Nuclino : Your team's collective brain

Nuclino brings all your team's knowledge, docs, and projects together in one place. It's a modern, simple, and blazingly fast way to collaborate, without the chaos of files and folders, context switching, or silos.

Create a central knowledge base and give your team a single source of truth.

Collaborate in real time or asynchronously and spend less time in meetings.

Manage and document your projects in one place without losing context.

Organize, sort, and filter all kinds of data with ease.

Integrate the tools you love , like Slack, Google Drive, Figma, Lucidchart, and more.

Ready to get started?

• Why Nuclino?
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House-Flipping Business Plan

Clothing Line Business Plan

Cannabis Business Plan

Laundromat Business Plan

• Business Plans

Game App Business Plan

Mobile games are one of the healthiest app industries, generating over $50 billion per year in sales. However, app investors know that only  4% of mobile games  will earn more than $1 million. On average, mobile games only earn around $3,000. For game app startups seeking investment, competition is extreme. To gain the attention of investors, you’ll need to stand out and a strong game app business plan can give you the edge that you need.  Game app startups don’t operate the same way as other startups. Providing pure entertainment, these games compete with some of the largest global industries including console games, computer games, and even other entertainment options like film and more. 

Important Game App Statistics

Why would a startup want to produce games? The easy answer is – the potential for revenue is immense. Check out these statistics related to the mobile game app industry:

• As of 2019, mobile is the fastest-growing games segment.
• Games represent around 10% of the amount of time spent on apps by users.
• On average, each U.S. mobile device has 8 mobile games installed and smartphone users play an average of 2 to 5 games per month.

Special considerations that should be made when writing a plan for your beauty tech startup include:

These stats are great for game creators, but even getting to the launch phase can be difficult and expensive. Super simple games can cost up to $50,000 to build while complex games can cost $100,000 or more. This doesn’t even include the cost of marketing the game and acquiring users. Securing investors can make it much easier to bring your mobile game to life. In this post, we will provide several tips on building a fantastic game app business plan that wins over investors. 

3 Important Game App Business Plan Considerations

Although  writing a business plan  for a game shares many similarities as writing for apps in other industries, there are some important differences. The following considerations should be made when writing an effective game app business plan. 

Mobile Game vs Mobile Game Startup

Before you start writing about what you’re building, it’s important to decide exactly what you’re building. Developing a mobile game is not the same thing as developing a mobile game app startup.  A mobile game is a one-off project. It’s built and launched by a game developer, and once it runs its course, it fades away.  A mobile game startup, however, is a business that produces mobile games. These startups understand what makes games successful and are able to create a viable formula to bring multiple games to success. While one game is at its prime in the market, developers are working on the next game; maintaining a constant flow of new products and developments.  Every mobile game startup will produce at least one mobile game, but not every publisher of a mobile game is a mobile game startup. Knowing where you fall will help you focus your game app business plan and set the expectation for readers.  Investors will prefer investing in a mobile game startup, and preferably, one that has already reached some minimal level of traction. If you are only interested in building a single game, however, crowdfunding may be a stronger option! 

Competitive Advantage

Unlike other industries, mobile games typically provide a solution to the same problem – a need to be entertained. While there are many categories of games, varying from type to age group, every game category is highly saturated.  The majority of games fail to impress. Even if they are able to get downloads, many fail to retain customers for more than a few days. With so many games, consumers have a ton of choices. As a result, the rate of app abandonment for mobile games is significantly higher than other types of apps.  To stand out among both consumers and investors, your game will need a distinct advantage. Somehow, it needs to be first, better, or different than its closest competitors. Even in a saturated market, investors want to see extreme innovation. How does your game differ from the other millions of games on the market? 

Monetizing Players

Marketing and operating a mobile game can be expensive. To earn a profit, you will need to figure out a way to monetize your game. Investors will be interested to know how you will convert visitors and users into paying customers, so a  monetization strategy  must be defined in your game app business plan. In general, there are three ways that mobile games are often monetized: 

• Paid Apps : Some app developers charge a one-time fee for users to download the app. After purchasing, users typically have access to the game forever. This strategy work best for games that are well-known or produced by extremely popular game developers. In general, new game apps find it difficult to monetize through a paid app strategy. 
• In-App Purchases : Many games offer in-app purchases as a method of monetization. For games with a high stickiness ratio, in-app purchasing can be extremely profitable. Offering additional credits, the opportunity to advance quicker, or other items (weapons, virtual clothing, etc.) game app startups can maximize the value of each and every customer. 
• Mobile Advertising : In-app advertisements are extremely popular among mobile games, especially free games. Since top games are able to attract hundreds of thousands or even millions of consumers in a short period of time, they are highly attractive to advertisers. In general, consumers have accepted that they are going to have to deal with ads in exchange for using free apps.

Ready To Write Your Game App Business Plan?

Our business plan writers have written hundreds of game app business plans, raising millions of dollars from investors around the world. We’d love to help you, too.  Contact us today  to schedule a consultation with one of our business plan consultants and get started on your fundraising journey today!

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Video Game Business Plan Sample

Published Dec.05, 2014

Updated Apr.24, 2024

By: Noor Muhammad

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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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