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Gaming Lounge Business Plan Template

Written by Dave Lavinsky

gaming lounge business plan

Gaming Lounge Business Plan

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

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

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

Download our Ultimate Business Plan Template here >

What Is a Business Plan?

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

Why You Need a Business Plan

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

Sources of Funding for Gaming Lounge Businesses

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

Finish Your Business Plan Today!

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

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

Executive Summary

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

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

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

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

Company Overview

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

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

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

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

Include answers to questions such as:

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

Industry Analysis

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

While this may seem unnecessary, it serves multiple purposes.

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

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

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

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

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

Customer Analysis

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

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

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

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

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

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Competitive Analysis

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

Direct competitors are othe r gaming lounge businesses. 

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

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

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

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

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

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

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

Marketing Plan

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

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

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

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

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

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

Operations Plan

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

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

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

Management Team

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

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

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

Financial Plan

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

Income Statement

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

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

Balance Sheets

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

Cash Flow Statement

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

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

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

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

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

Gaming Lounge Business Plan FAQs

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

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

How Do You Start a Gaming Lounge Business?

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

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

Where Can I Download a Free Business Plan Template PDF?

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

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

We do offer a premium version of our business plan template. Click here to learn more about it. The premium version includes numerous features allowing you to quickly and easily create a professional business plan. Its most touted feature is its financial projections template which allows you to simply enter your estimated sales and growth rates, and it automatically calculates your complete five-year financial projections including income statements, balance sheets, and cash flow statements. Here’s the link to our Ultimate Business Plan Template.

Don’t you wish there was a faster, easier way to finish your Gaming Lounge business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.  

Click here to see how Growthink’s business plan professional services can help you create a winning business.

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

  • Last Modified: February 24, 2023

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

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

Table of Contents

You might not need a business plan  now.

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

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

What is a Business Plan in a Video Game Studio Context

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

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

Why  and When a Video Game Business Plan

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

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

Executive Summary

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

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

Business Overview

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

Introduction

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

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

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

Management team / Our team

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

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

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

A Word From Us

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

Business Ownership & Structure 

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

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

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

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

Collaborations / partnerships

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

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

Key planned hires

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

Previous games and collaborations 

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

Current Development : Empy

( empy is the name of the fictional game).

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

Some aspects that could be mentioned:

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

Other merchandise

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

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

Market Analysis

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

Global Video Game Market

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

Industry Trends

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

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

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

RPG & Survival RPG

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

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

(Include all your sources)

Competition analysis

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

RPG + Survival Games

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

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

Development Studios

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

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

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

Development Schedule and Budget

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

Milestones (Tied to the Development Schedule)

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

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

Technology, Software and Tools

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

Location & Facilities

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

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

Distribution and Sales Plan

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

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

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

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

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Marketing Plan

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

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

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

Marketing Objectives

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

Emperor’s Studio ‘marketing objectives are to:

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

Video Game Marketing Campaign Strategy

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

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

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

gaming company business plan

Pre-release marketing tactics

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

Steam store page, tags and notification. 

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

Connect with Steam Curators

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

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

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

Developer announcements

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

Steam Store Widget

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

Language and translation (localization)

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

‘Coming soon’ Steam Page

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

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

Release Day Marketing

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

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

After Launch Marketing

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

Steam Organic Visibility

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

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

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

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

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

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

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

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

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

Social Media & Advertising

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

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

Game Industry Events

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

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

Intellectual Property

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

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

Key metrics (KPI)

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

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

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

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

Partnership with a publisher

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

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

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

Financial Plan

Key assumptions.

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

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

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

Use of Funds

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

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

Sources of Funds

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

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

Financial Forecasts

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

Financial forecasts are divided into three broad categories:

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

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

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

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

Additional Resources

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

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

gaming company business plan

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

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

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

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

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How to Successfully Raise Funds for Your Video Game Studio

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

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

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Video Game Business Plan Sample

DEC.05, 2014

video game business plan

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.

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Video Game Business Plan

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Pixel Frontier Studios

Value proposition.

Pixel Frontier Studios creates immersive, narrative-driven video games that foster strong emotional connections with players and explore unique themes and settings.

The Problem

The gaming industry is saturated with repetitive content and a lack of diversity in themes and storytelling. Gamers are looking for unique, captivating experiences that push the boundaries of conventional gaming.

The Solution

Pixel Frontier Studios focuses on creating high-quality, innovative games with memorable characters, engaging storylines, and diverse settings. Our games provide an emotional experience that keeps players invested and craving more.

Target Market

Our primary target market includes:

  • Gamers aged 18-35 seeking narrative-driven experiences
  • Individuals who enjoy indie games and unique concepts
  • Gamers who appreciate games with diverse representation and themes

Competitors & Differentiation

Current alternatives.

  • AAA game studios producing high-budget games
  • Other indie game studios
  • Mobile gaming companies

Pixel Frontier Studios’ commitment to diverse storytelling and innovative game mechanics sets us apart from competitors. Our team’s passion for creating unique experiences and our attention to detail ensure high-quality games that resonate with players.

Funding Needs

  • Office space and equipment: $150,000
  • Software and licenses: $50,000
  • Salaries and benefits for the first year: $600,000
  • Marketing and advertising: $100,000

Initial game development: $500,000

  • Total initial funding needed: $1,400,000

Sales Channels

  • Xbox Game Store
  • PlayStation Store
  • Nintendo eShop
  • Direct website sales

Marketing Activities

  • Social media campaigns
  • Influencer partnerships
  • Gaming conventions and expos
  • Sponsored events and tournaments
  • Press releases and PR

Financial Projections

2023: $1,200,000

2024: $2,000,000

2025: $3,000,000

Expenses/Costs

2023: $1,400,000

2024: $1,600,000

2025: $1,800,000

2023: -$200,000

2024: $400,000

2025: $1,200,000

  • Secure funding — June 1, 2023
  • Establish office space and equipment — July 1, 2023
  • Complete hiring and onboarding — August 1, 2023
  • Begin development of the first game — September 1, 2023
  • Launch marketing campaign — January 1, 2024
  • Release first game — October 1, 2024
  • Begin development of the second game — November 1, 2024
  • Achieve 500,000 units sold for the first game — December 31, 2024

Team and Key Roles

Ceo and creative director, oversees company strategy, game development, and overall creative vision, lead game designer.

Responsible for designing and implementing game mechanics, levels, and gameplay experiences

Lead Programmer

Manages programming team and ensures all technical aspects of the game function as intended

Lead Artist

Guides art direction and oversees production of all visual assets for the game

Narrative Designer

Develops and implements the game’s story, dialogue, and character interactions

Marketing Manager

Directs marketing efforts, including public relations, events, and social media campaigns

Partnerships & Resources

  • Local game development associations and networks: Collaborate on events and initiatives, access to resources and support
  • Game engine and software providers: Secure partnerships for cost-effective licenses and support
  • Gaming influencers: Establish partnerships for promotion and feedback during game development

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Simple Gaming Business Plan Template

Simple Gaming Business Plan

Breakdown a basic gaming business plan and more by editing this simple gaming business plan template.

  • Design Style : modern
  • Colors : vibrant
  • Size : Letter
  • Plan : business

Create a vibrant gaming business plan and other processes with this editable Simple Gaming Business Plan Template. You can easily customize it within minutes for an eye-catching design. This business plan template features a bright gradient color scheme, icons, and bold headings. Start by incorporating a bright color palette and choose a gradient style for a cool effect. Venngage has a wide selection of bright color palettes to pick from and a variety of style options. Choose the one that works for your business plan for the perfect design. Next, apply icons that relate to your business and help visualize the content. There are thousands of icons available in the Venngage gallery, so don't hesitate to try different icons until you find the right ones. Make sure the content pops off the page by integrating bold headings. This will ensure that the Simple Gaming Business Plan Template is more noticeable. You can also utilize italics or underlines to enhance the content. Get started on your design now!

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How to Start a Video Game Company

Back to All Business Ideas

Written by: Carolyn Young

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

Edited by: David Lepeska

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

Published on March 4, 2022 Updated on February 13, 2024

How to Start a Video Game Company

Investment range

$6,550 - $12,100

Revenue potential

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

Time to build

3 – 6 months

Profit potential

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

Industry trend

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

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

Looking to register your business? A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple.

Form your business immediately using ZenBusiness LLC formation service or hire one of the Best LLC Services .

Step 1: Decide if the Business Is Right for You

Pros and cons.

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

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

Video game industry trends

Industry size and growth.

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

video game industry size and growth

Trends and challenges

Trends in the video games industry include:

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

Challenges in the video games industry include:

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

video game industry Trends and Challenges

Demand hotspots

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

video game industry demand hotspots

What kind of people work in Video Games?

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

video game industry demographics

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

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

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

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

How much can you earn from a video game business?

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

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

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

video game company earnings forecast

What barriers to entry are there?

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

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

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Step 2: hone your idea.

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

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

Why? Identify an opportunity

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

gaming company business plan

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

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

What? Determine your products or services

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

How much should you charge for video games?

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

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

Who? Identify your target market

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

Where? Choose your business premises

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

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

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

video game company idea rating

Step 3: Brainstorm a Video Game Company Name

Your business name is your business identity, so choose one that encapsulates your objectives, services, and mission in just a few words. You probably want a name that’s short and easy to remember, since much of your business, and your initial business in particular, will come from word-of-mouth referrals.

Here are some ideas for brainstorming your business name:

  • Short, unique, and catchy names tend to stand out
  • Names that are easy to say and spell tend to do better 
  • Name should be relevant to your product or service offerings
  • Ask around — family, friends, colleagues, social media — for suggestions
  • Including keywords, such as “video games” or “games”, boosts SEO
  • Name should allow for expansion, for ex: “Arcadia Entertainment” over “eSports Interactive Games”
  • Avoid location-based names that might hinder future expansion
  • Use online tools like the Step by Step Business Name Generator . Just type in a few keywords and hit “generate” and you’ll have dozens of suggestions at your fingertips.

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

Find a Domain

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

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

Step 4: Create a Video Game Company Business Plan

Every business needs a plan. This will function as a guidebook to take your startup through the launch process and maintain focus on your key goals. A business plan also enables potential partners and investors to better understand your company and its vision:

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

what to include in a business plan

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

Step 5: Register Your Business

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

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

Choose where to register your company

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

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

Choose your business structure

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

Here are the main options:

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

types of business structures

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

Form Your LLC

Choose Your State

We recommend ZenBusiness as the Best LLC Service for 2023

gaming company business plan

Step 6: Register for Taxes

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

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

gaming company business plan

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

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

Step 7: Fund your Business

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

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

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

gaming company business plan

Step 8: Apply for Video Game Company Licenses and Permits

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

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

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

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

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

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

Step 9: Open a Business Bank Account

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

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

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

Step 10: Get Business Insurance

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

Here are some types of insurance to consider:

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

types of business insurance

Step 11: Prepare to Launch

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

Essential software and tools

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

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

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

Develop your website

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

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

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

Here are some powerful marketing strategies for your future business:

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

Focus on USPs

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

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

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

unique selling proposition

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

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

Step 12: Build Your Team

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

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

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

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

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

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

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

  • Video Game Business FAQs

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

Traditional physical games cost $50 to $60. If you create online games, prices range from $3 to $4.

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

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

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

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

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

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How To Write a Business Plan for Video Game Development Company in 9 Steps: Checklist

By alex ryzhkov, resources on video game development company.

  • Financial Model
  • Business Plan
  • Value Proposition
  • One-Page Business Plan

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.

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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Zachary Strebeck, Video Game Lawyer Logo

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.

Get a business plan for your indie game studio

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 studio business plan - do you need one?

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 types of indie studio business plans

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.

gaming company business plan

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.

Get your indie game studio off the ground

Sign up below to get my FREE game development legal eBooks!

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

Zachary Strebeck

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How to Start a Profitable Game Business [11 Steps]

Nick

By Nick Cotter Updated Feb 02, 2024

image of a game business

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.

image of a game business

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!

image of ZenBusiness logo

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.

BUSINESS STRATEGIES

How to start a gaming business

  • Jeremy Greenbaum
  • Aug 11, 2023

How to start a gaming business

If you have a passion for gaming, a deep understanding of the industry and a desire to turn your love for games into a business, starting a gaming business can be an exciting and fulfilling venture. In this guide, we'll walk you through the process of starting a gaming business, from developing your concept to creating a professional business website and provide you with valuable insights to help you succeed in this dynamic industry.

The gaming industry has experienced tremendous growth in recent years, fueled by technological advancements, widespread adoption of gaming platforms and the increasing popularity of esports. Starting a gaming business allows you to tap into this thriving market and offer products and services that are tailored to gamers while making money in gaming .

What is a gaming business?

A gaming business encompasses a wide range of activities related to the gaming industry. This type of business can include developing and publishing video games, operating a gaming arcade or esports center organizing gaming tournaments and events, providing game streaming and content creation services or running a gaming merchandise and accessories store. The key is to identify a niche within the gaming industry that aligns with your interests and expertise.

Starting a gaming business requires careful planning, research and execution. Here are seven essential steps to guide you through the process:

Define your gaming business concept

Create a business plan

Secure financing

Set up your gaming infrastructure

Develop and market your products or services

Build and engage your gaming community

Continuously innovate and evolve

01. Define your gaming business concept

Clarify your vision and identify the specific niche or segment of the gaming industry you want to focus on. Determine whether you want to develop games, provide gaming services, organize events or offer gaming merchandise. Research your target audience, competitors and market trends to refine your concept and identify unique selling points.

02. Create a business plan

Develop a comprehensive business plan that specifies your goals, target market, competitive analysis, marketing strategies and financial projections. Your business plan will serve as a roadmap for your gaming business and help you secure financing if needed. Consider including the following sections:

Executive summary: A concise overview (otherwise known as a concept statement ) of your gaming business concept, mission and key objectives.

Market analysis: Identify your target audience, analyze their preferences and assess the competitive landscape.

Product or service offering: Describe the specific products or services you will offer, your unique selling proposition and how they meet the needs of your target market.

Marketing and sales strategy: Outline your marketing and promotional tactics to reach and engage your target audience.

Financial projections: Develop a financial forecast, including startup capital and costs, operating expenses , revenue projections and profitability analysis.

how to start a gaming business, business plan

03. Secure financing

Determine the financial resources required to start and operate your gaming business. This may include funds for game development, equipment purchases, marketing, website development and operational expenses. Explore financing options such as personal savings, loans, grants, crowdfunding or seeking investors to secure the necessary capital. Check out our helpful guide on how to raise money for your business for more information.

04. Set up your gaming infrastructure

Depending on your chosen gaming business model, you'll need to set up the necessary infrastructure. This may include:

Make your business official: Choose your business structure and Register your business so you’re in compliance with for operating a gaming business in your area. Choose your business entity and register your business accordingly.

Game development: If you're developing games, assemble a team of skilled developers, artists and designers. Acquire the necessary hardware and software tools, establish a development workflow and create a development schedule.

Physical location: If you're opening a gaming arcade or esports center, secure a suitable location, obtain any necessary permits or licenses and design the space to create an immersive and engaging environment.

Online presence: Regardless of your business model, establish an online presence through a website and social media platforms in order to advance your networking efforts and gain credibility and trust. Build a website using a small business website builder like Wix to showcase your products or services, engage with your audience and provide updates and information. If you plan on selling gaming related products via eCommerce , you can consider creating an eCommerce website .

how to register a gaming business

05. Develop and market your products or services

If you're developing games, focus on creating high-quality, engaging and unique gaming experiences that cater to your target audience. If you're offering services or organizing events, ensure they meet the needs and expectations of your target market. Develop a marketing strategy to raise awareness about your gaming business, attract players or customers and build a loyal community. Leverage online platforms, social media, content marketing, influencer partnerships and online advertising to reach and engage your target audience.

06. Build and engage your gaming community

Nurture relationships with your players, customers and community members. Create spaces for interaction, such as forums, Discord servers or social media groups, where gamers can connect, share experiences and provide feedback. Organize events, tournaments or livestreams to foster engagement and loyalty. Actively listen to your community, address their concerns and incorporate their feedback into your business decisions.

07. Continuously innovate and evolve

The gaming industry is dynamic and constantly evolving. Stay informed about the latest trends, technologies and player preferences. Continuously innovate and improve your products or services to stay competitive. Seek feedback from your community and leverage data analytics to make data-driven decisions. Adapt to changing market conditions and embrace new opportunities to ensure the long-term success of your gaming business.

How to manage a gaming business effectively

Managing a gaming business requires effective leadership organization and adaptability. Here are five key steps to manage your gaming business effectively:

Develop a clear organizational structure: Define roles and responsibilities within your gaming business to ensure efficient operations. Assign tasks, establish reporting lines and create a transparent communication framework. Clearly communicate expectations, goals and performance metrics to your team.

Prioritize quality and player satisfaction: Focus on delivering high-quality products or services that meet or exceed the expectations of your players or customers. Pay attention to their feedback, address their concerns promptly and continuously improve based on their needs. Strive for exceptional customer service and make player satisfaction a top priority.

Foster collaboration and skill development: Encourage collaboration and teamwork among your employees. Create a positive and inclusive work environment that values creativity, innovation and personal growth. Provide opportunities for professional development, training and upskilling to enhance the skills and knowledge of your team members.

Implement effective project management: If you're developing games or organizing events, implement project management techniques to ensure timely delivery and effective resource allocation. Use project management tools to plan, track progress and communicate with your team. Break down projects into manageable tasks, set deadlines and regularly review and adjust your project plans.

Monitor and analyze key performance indicators (KPIs): Establish key performance indicators to measure the success of your gaming business. Monitor metrics such as player engagement, revenue, customer acquisition and retention rates, social media reach and customer satisfaction. Analyze the data and use insights to make informed business decisions, identify areas for improvement and capitalize on opportunities.

How to promote your gaming business

Promoting your gaming business effectively is crucial for attracting players, building a community and establishing a strong brand presence. Here are five tips to help you promote your gaming business successfully:

Build your brand: What you name your business , your logo, your color palette and brand messaging are vital to establishing an effective and cohesive brand. Consistency and professionalism in your branding across all platforms, including your website, marketing materials and social media, will help establish trust and recognition among potential clients. If you’re looking for some branding help, consider using Wix’s logo maker and business name generator to get your creative juices flowing. Be sure to check out these gaming logo ideas for inspiration.

Leverage social media and online communities: Utilize social media platforms, gaming forums and online communities to engage with your target audience. Create accounts on platforms like Twitter, Instagram and Reddit to share updates, behind-the-scenes content and engage in conversations. Collaborate with influencers or streamers in the gaming community to reach a wider audience and build credibility.

Host gaming tournaments or events: Organize gaming tournaments, events or livestreams to generate excitement and attract players. Provide appealing prizes, create a competitive environment and promote the events through social media, gaming forums and online communities. Collaborate with other gaming businesses, influencers or esports organizations to amplify the reach and impact of your events.

Develop engaging content: Create and share compelling content related to your games, gaming tips, industry news or behind-the-scenes insights. Write blog posts, create videos or host podcasts to establish yourself as an authority in the gaming industry. Engage with your community through content, encourage user-generated content and respond to comments or inquiries promptly.

Collaborate with streamers and influencers: Partner with popular streamers, content creators or influencers in the gaming industry. Collaborate on live streams, sponsor their content or provide early access to your games. Their endorsement and reach can significantly boost your visibility and attract new players to your gaming business.

By following these steps and implementing effective marketing strategies, you can start and manage a successful gaming business. Continuously innovate, adapt to player preferences and provide exceptional experiences to ensure the long-term growth and profitability of your gaming venture.

How to start a gaming business in a specific state

If you're looking into starting a gaming business in a specific state, here’s what you need to know:

How to start a business in Massachusetts

How to start a business in Florida

How to start a business in California

How to start a business in Indiana

How to start a business in Maryland

How to start a business in Wisconsin

Don’t see your chosen state here? You can use the search bar in the Wix Blog to find all the information you need.

Why start a gaming business?

The gaming industry offers numerous opportunities for entrepreneurs to establish successful businesses. Here are some compelling reasons to start a gaming business:

Growing market: The gaming industry is booming , with billions of players worldwide and a constant influx of new gamers joining the community. This growing market presents ample opportunities for innovative businesses to thrive.

Passion and interest: Starting a gaming business allows you to turn your passion for gaming into a career. When you're genuinely interested in the industry and the products or services you offer, it can drive your motivation and contribute to the long-term success of your business.

Diverse revenue streams: The gaming industry offers multiple revenue streams, including game sales, in-game purchases, advertising, sponsorships, merchandise sales and event ticket sales. By diversifying your offerings, you can create a sustainable business model and adapt to market trends.

Benefits of starting a gaming business

Starting a business in the gaming industry comes with tons of benefits that make it an appealing entrepreneurial opportunity. We’ve distilled a few of the main ones for you:

Creative expression: The gaming industry allows for creativity and innovation. Whether you're developing games organizing events or providing content, you have the freedom to express your ideas and make a unique impact on the gaming community.

Flexibility: Gaming businesses often offer flexibility in terms of working hours and location. Depending on the type of business you choose, you can operate from a physical location or work remotely, giving you the freedom to design your work-life balance.

Constant learning and adaptation: The gaming industry is ever-evolving, with new technologies, trends and player preferences emerging regularly. As a gaming business owner, you'll have the opportunity to continuously learn, adapt and stay at the forefront of industry developments.

Potential for global reach: The gaming community is global, connected by online platforms and communities. With the right strategies, your gaming business can reach a worldwide audience, expanding your market and growth potential.

Challenges of running a gaming business

While starting a gaming business has numerous benefits, it also comes with its own set of challenges:

Competitive market: The gaming industry is highly competitive, with many established companies and indie developers vying for players' attention. Standing out in such a crowded market requires unique value propositions, high-quality products or services and effective marketing strategies.

Technological advances: The gaming industry is driven by technology and staying up-to-date with the latest advancements can be a challenge. Keeping pace with hardware and software developments, new platforms and emerging technologies like virtual reality (VR) and augmented reality (AR) is crucial for staying relevant.

Monetization strategies: Finding the right monetization strategies for your gaming business can be challenging. Whether it's deciding on pricing models, in-game purchases or advertising strategies, striking a balance between profitability and player satisfaction is essential.

Community building and engagement: Building an engaged and loyal community around your gaming business takes time and effort. Nurturing relationships with players, streamers, content creators and influencers requires effective community management, active communication and fostering a positive and inclusive environment.

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Home » Sample Business Plans » Wholesale & Retail

A Sample Video Game Store Business Plan Template

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

Why Start a Video Game Store?

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

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

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

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

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

1. Industry Overview

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

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

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

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

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

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

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

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

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

2. Executive Summary

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

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

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

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

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

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

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

3. Our Products and Services

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

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

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

4. Our Mission and Vision Statement

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

Our Business Structure

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

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

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

  • Chief Executive Officer (Owner)
  • Store Manager

Merchandize Manager

Sales and Marketing Manager

  • Accountants/Cashiers
  • Store Attendant/Customer Services Executive

5. Job Roles and Responsibilities

Chief Executive Officer – CEO (Owner) :

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

Accountable for fixing prices and signing business deals

Responsible for providing direction for the business

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

Responsible for signing checks and documents on behalf of the company

Assesses the success of the organization

Store Manager:

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

Accountant/Cashier

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

Store Attendant/Client Service Executive

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

6. SWOT Analysis

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

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

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

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

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

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

  • Opportunities:

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

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

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

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

7. MARKET ANALYSIS

  • Market Trends

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

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

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

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

8. Our Target Market

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

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

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

Our competitive advantage

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

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

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

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

9. SALES AND MARKETING STRATEGY

  • Sources of Income

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

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

10. Sales Forecast

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

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

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

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

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

  • Marketing Strategy and Sales Strategy

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

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

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

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

11. Publicity and Advertising Strategy

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

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

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

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

12. Our Pricing Strategy

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

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

  • Payment Options

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

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

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

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

13. Startup Expenditure (Budget)

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

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

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

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

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

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

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

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

14. Sustainability and Expansion Strategy

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

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

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

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

Check List/Milestone

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

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How to Start Your Gaming Company: Complete Guide

The online gambling market is thriving and there is no better time to set up a gaming company. But the process from start to finish can be a bit daunting. In this article Fast Offshore will take you through the process, giving you all you need to know about establishing your first gaming business.

Business Planning for your Gaming Company

So you’ve been nurturing the idea of setting up a gaming company and you’re ready to take the first steps. Before you get carried away or start setting up legal entities, you need to do some serious business planning.

Create your Gaming Company Business Plan

  • GOALS : Your business plan should start with your goals , what you want to achieve, and how . It should also drill down into who your target markets are, where they are located , what they are interested in, and of course, what kind of games they are into.
  • COMPETITORS : This is also a good time to check out the competition . See who else in the gaming business is offering a similar concept to yours. Look at regional and international competitors, as well as those that are offering products like yours. Try to find a niche that is currently not being served or find a competitive advantage that will differentiate you from those that are already established.  The online gambling industry is a huge, international market and there is a range of demographic groups that all have specific preferences. Do you want to offer eSports to the Latin American market or slots and lotto to the EU? All of this needs to be carefully considered before you move onto the next step.
  • COMPANY NAME : Once you have established this, you need to pick a name for your gaming company. Make sure the domain is available , buy it and consider registering trademarks and copyrights relating to your new brand. This will prevent someone else from coming along and taking your idea, or coincidentally launching a similar concept before you.
  • Figure out your goals
  • Who are your clients? What do they want?
  • Compare the markets to find the best fit for you
  • Decide on the games you will offer on your site
  • Check out the competition and find your niche and/or competitive advantages
  • Name your business
  • Figure out if there are any necessary trademarks and copyright protection to register

Consider your Finances and Set Up a Budget

Set up a Budget for your Gaming Company

In addition to this, decide on your budget for set up and a reasonable deadline for going live. This will help you decide on which gaming license is best for your needs based on a range of factors. Which license you opt for may also have some influence on the kinds of games you will be offering. These usually include live casino , online betting , esports , poker , bingo , lotto , online casino , and slots .

Last but not least, you need to think about how you will maintain your business in the long run. As you grow and take on more clients, you will find you don’t have time to dedicate to behind-the-scenes matters. Reporting, filing, renewals, compliance, and regulatory obligations are all serious matters and should be managed by an experienced professional.

Set up a Budget for your Gaming Company

Back at the business plan stage, you should have already given some consideration to your budget. Knowing how much you can afford to spend is important as this will have a direct impact on your profitability in the first months and even years. Setting up an online gaming company can come with lots of costs- some of which you probably haven’t even thought of. Here are some ideas to help you set realistic and achievable goals , as well as efficiently manage your budget. 

Setup costs

The setup costs are what it will cost you to get your gaming business up and running. These usually include, but are not limited to:

  • Corporate service provider fees
  • Company incorporation
  • Hardware and software licensing set up
  • Gaming license fees
  • Required capital
  • Merchant account set up costs
  • Office rent and set up
  • Staff hiring
  • Pre-launch marketing
  • Website design and integrations
  • Domain purchase and hosting
  • App development
  • Compliance fees
  • Other certifications where applicable.

Ongoing costs

Once you’ve paid out for the initial costs, you need to factor in ongoing fees and maintenance. Firstly consider practical costs such as renting an office space , staff salaries , electricity and water , office supplies , insurance , software provider fees , marketing , and costs relating to maintenance of your license and company .

The best practice is to set a budget that will cover the first 1-2 years of operation and go from there.

Do your homework

When considering your budget, you also need to ascertain how much profit you think you can realistically make in the first year. Set a figure for how many transactions you think you will facilitate, what currencies and payment methods you will accept, and how many customers you hope to have.

Additionally, you should set an average purchase price based on research into the market and what other companies are achieving. 

Choose the right Corporate Service Provider for you

Choose a Corporate Services Provider

Once you have a clear idea of what your new gaming company venture will look like, what your goals are, which are your target markets and the type of services you’d like to offer, it’s time to appoint a corporate services provider .

There are countless providers out there, but not all are going to be suited to your needs. Keep in mind that they will vary in quality of service, price, attention to detail, professionalism, experience, services offered, and location-specific factors as well.

When choosing a service provider, consider the following points:

gaming company business plan

Form a Legal Entity for your Gaming Company

Register your Gaming Company

Once you have all the background work completed, it is time to get the corporate ball rolling. Setting up the corporate entity- usually, a company is next on your ‘to-do’ list. It is no good just picking any jurisdiction to incorporate your gaming company in. You need to consider if the regulations in that country suit your needs , what the applicable licensing environment is like, and of course fiscal considerations.

CORPORATE SERVICE PROVIDER : A smart idea is to engage an experienced iGaming Services provider such as Fast Offshore , to help you weigh the pros and cons of each location. Once you have decided on the one that is best for you, the process of collecting the right documents and submitting to due diligence processes can begin. 

Be aware that some countries regulate online gambling in-country, and some have banned it within their jurisdictions. Others lack regulations completely, so you need to make sure that your jurisdiction of choice allows you to carry out the activities you want.

Popular Offshore Jurisdictions to register your Betting Company

OFFSHORE JURISDICTIONS : If you decide to opt for an offshore betting company , the most popular jurisdictions are Curacao , Kahnawake , Malta and Isle of Man . Each of these jurisdictions has different obligations when it comes to company incorporation, time frames, costs, and requirements. Make sure to discuss all of these variables with your corporate services provider.

Once you have your gaming company set up, you need to make sure you stay on top of maintenance and ongoing obligations. These include filing, reports, statement and compliance and can vary greatly between jurisdictions. 

Choosing a Software Platform

Pick the right software for your Gaming Business

Now the fun begins. Once you have all of the corporate matters being taken care of by Fast Offshore, you need to turn your attention to what games provider you will use on your online gambling platform .

There is a wide range of software and game providers out there. They range from high-end and super expensive, to basic games or platforms with a lower price point. You need to ascertain your price point and be sure to balance what you pay with what level of quality you want to offer your players.

Making sure that the software is legitimate and reputable , as well as having popular games is key to making a good decision. 

Other considerations

But your gaming company also requires other kinds of software , not just gaming software. Here are some key questions you should be asking yourself when you get to the stage of considering software for your new venture.

  • Do you need a CMS ? If so, what features do you require?
  • Will you use a Customer Relationship Management system?
  • What about a game management system?
  • How will you manage promotions and bonuses to your clients?
  • What type of payments platform are you planning to use?
  • Do you intend on offering different payment methods including cryptocurrency?
  • Will you require reporting software to pull off analytics on revenue , clients , retention , game popularity etc?
  • How do you intend on protecting your customers from hacks , fraud , and security breaches ?
  • Do you intend on working with affiliates ? If so, you’ll need software to manage them
  • What about an email platform to handle customer service and promotional emails?
  • Do you plan on offering tech support to your clients?

These might seem like tough questions to answer, particularly for a startup gaming business but thankfully your iGaming Services Provider will be able to assist . Fast Offshore has been working in iGaming for over two decades and has a vast network of trusted companies that can provide all of these services and more. With a focus on software that is reliable, reputable, and flexible, we are on hand to offer suggestions and guidance for you at this stage.

Register for taxes

How much tax does your Gaming Business need to pay?

Tax is one of the least enjoyable aspects of setting up a business but it is a necessary consideration for law-abiding operators.

How much tax you pay and if you even pay tax at all will depend on where your gambling company is incorporated . Some jurisdictions have an income tax and gaming tax, others none at all. Your corporate service provider will be able to advise what your fiscal liabilities are in the jurisdiction you have chosen.

Think about Your Business Security

Pay attention to your Business Security

The security of your site as well as you and your client’s data should be of paramount importance. This is not something that you can or should attempt to manage yourself. Instead, it’s wise to onboard the services of a reliable company that will provide your user’s data and keep it out of the hands of fraudsters.

Depending on the jurisdiction your gaming business is located in, you may have security obligations that are required as a part of operating there. These can include KYC policies, due diligence, underage gaming policies, a verification process for each user, and compliance with anti-money laundering legislation.

Furthermore, your website should be encrypted as a standard , as should all communications between you and your customers. 

Website Creation for your Gaming Business

Your website should display properly on desktop, mobiles and tablets

Your website is perhaps one of the most important parts of your business. It is the first thing your clients will see and if you don’t get it right, they will go elsewhere. The website must be attractive , modern , easy to navigate , and of superior quality . After all, it is the face of your gaming company. Make sure it looks nice, works well, and is different from other companies that offer similar gambling experiences. A failsafe way of ensuring your site is up to scratch is by employing a UX expert to make sure it’s user friendly and intuitive .

Another key consideration is how the website displays on mobiles and tablets . A growing number of gamblers are using mobiles and tablets to access online gambling sites. If your site is not optimized for these devices, those users will go elsewhere and are unlikely to return. Loading time is very important to players, as well as search engines who take this into account when ranking you.

Lastly, take great care to properly integrate the front end of your site with the backend . The transfer from the website to the payments platform and provider’s game page should be seamless . The entire process should be smooth, including the back and front end, payment page , in-software communications , emails , etc.

Open settlement accounts and select payment options

Set up your merchant account and payment options

Ensuring you can get paid and make payments is crucial to your gaming company. Therefore you need to set up a settlement account and a network of payment methods for your gaming business.

You should be providing your players with multiple payment options including credit and debit card, bank transfer, ePayment providers, and cryptocurrency. There are lots of providers out there so you have to find ones that are widely used and offer favourable terms and usage conditions. Doing so enables your customers to make quick and easy transactions through a method that is convenient for them.

Your corporate service provider should be able to help you get even better corporate and merchant accounts with favourable rates and terms , as well as help you set up the accounts . Remember, they have been working with most of the leading names for decades.

Set Up Business Accounting

Accounting for your Gaming Business

Regardless of the jurisdiction, your gaming business is located in, you will have to have business accounting in place. Keeping accurate and detailed accounts is not only best practice but it’s the best way to ascertain the health of your company and platform. It will also greatly simplify your annual tax filing if this is something you’re required to do.

Thankfully, most good corporate service providers can offer business accounting services as a part of ongoing maintenance . Matters relating to reporting, filing, and accounting can be handled by a trusted partner, or in collaboration with your in-house team.

Staff Search for your Gaming Business

So you’ve taken care of the company formation, games, website, and accounting but who is going to make your gaming company tick? It’s now time to hire staff.

As a startup, you need to find a selection of highly qualified and experienced individuals that can manage your business. They should also be able to train up your other team members . Most likely, you will require at the very least, professional experts in the following:

Build your team with qualified proffesionals

  • Programming
  • Customer Service
  • Fraud Management
  • Payment Processing

Under each of these senior-level individuals will be a team comprising experienced and less-experienced individuals. Through this multi-layer approach, you’ll have the necessary human resources needed to keep your gaming business running smoothly.

But having a great team isn’t just about qualifications and experience. You need to be sure that everyone is in-line with your vision , goals , culture , rules , and of course, the industry. Build a company culture that is open and informative, make ongoing development a core part of your ethos.

Set up your Key Performances Indicators for every department, make sure each team understands them and tracks them properly so your company can move fast and optimize your strategies when you spot a problem. Also, make sure your team understands what sets you apart from others.

Marketing Tips for Your Gaming Business

Now that you have set up all the other important aspects of your Gaming Business, you need to focus on getting the word out about your Gaming Business. A sound marketing strategy will help you connect with potential customers , keep existing clients interested, enhance your reputation , and of course, boosting your sales .

You’ll need to come up with a marketing plan, learn what your competitors are doing, establish your competitive advantage(s), define your corporate identity, design special offers based on your audience needs, promote your services throughout the different channels, incentivize customer loyalty, identify your top clients and keep a close look at your numbers to ensure you are meeting your company’s KPIs.

Competitors:

Before you decide on any strategy, you need to study your competitors . At this point, you should have already carried out extensive research to see what market leaders are doing.

Look at your competitors from a potential customer perspective. Try their product, go over their Customer Journey and ask yourself; where are they failing? What could we do better? This is where you need to focus your efforts- on doing what others can’t. Find your competitive advantage , create a unique offering and fill the gap in the market, you can create a truly enhanced product.

How you visually market your gaming company is very important. Based on your target audience , you need to pick a simple but desirable logo, a tag line, a colour scheme and a voice for your company.

Be consistent, ensure your user experience is seamless from beginning to end. From the fonts, colours and content on your website to the imagery and design on your emails and general communications, to banners and marketing materials used to promote your brand on other websites.

Set up Marketing Strategies for your Gaming Business

Have a Proper CRM System in Place

A good way of keeping on top of your marketing successes and fails is by implementing a Customer Relationship Management system or CRM. This means you can collect data on users , get to know them , know their gaming patterns and preferences , their preferred payment methods , their average betting size , etc.

It should also allow you to keep your customer’s contact details, date of birthday, exceptions granted, special notes for your team and much more.

VIP Customers

You should take steps to identify your most profitable customers and figure out how to keep them happy. Creating a dedicated VIP team to take care of them by sending them gifts is a great way of building brand loyalty .

It’s worth getting their feedback on new products , letting them test beta versions , and listening to what they have to say.

Bonuses, Freebies and Loyalty Programs

There’s a myriad of tools to attract signups and retain your clientele, according to the type of gaming business you are in. You can offer signup and redeposit bonuses, as well as limited-time offers based on special events or occasions. You may also offer free spins , free chips , tournaments , social media challenges, contests , rebates or cash backs… the list is endless.

It is also recommended to create a loyalty programme that rewards existing players for positive behaviours. You can award them with points based on the size of their deposits, their betting volume, social media actions, challenges accomplished, and much more. The rewards can include cash, free bets, spins, deposit matches, or simply points that can be exchanged for branded merchandise and products of their interest.

However, you must pay close attention to your terms and conditions . Make sure your bonuses are structured properly, that they are transparent, contain all the necessary details and that they are not misleading . Once you’ve upset a customer, they will likely tell others and cause damage to your efforts.

Distribution Channels

You also need to think about how you will reach out to potential, current, and future clients. What methods will you utilise? SEO , SEM , email marketing , in-software tools , text messaging , push notifications , sales calls , affiliates , paid advertising campaigns , are some of the most popular ways of contacting users but there are other things you should consider as well. Social media marketing , forums , press releases , sponsorships , gaming directories , networking , article writing are all great ways of reaching current and potential customers.

Customer Support for your Gaming Business

Efficient customer service is a key component of a successful gaming company. If you don’t respond to your client’s needs or resolve their issues quickly , they will go elsewhere. In some cases, failing to offer good customer service can find you on the wrong side of your licensing authority too.

To obtain a truly outstanding level of customer service:

Provide Top Notch Customer Support

  • Offer round-the-clock customer service, 365 days a year
  • Provide a variety of different communication channels . These should include email, phone, and webchat
  • Run periodic quality assurance checks to ensure your standards are maintained
  • Conduct regular surveys and use customer’s feedback to improve your service and tools
  • Adhere to best practices to be fair , honest , and transparent
  • Be clear with your rules and make them easily accessible
  • Provide manuals , guides , how-to, and FAQ sections and ensure they are regularly reviewed
  • Be transparent with bonuses and offers, how they are calculated and how users can withdraw money
  • Ensure your CS representatives are fully aware of your marketing promotions as well as their terms and conditions BEFORE they are launched.  
  • Keep an open channel with your players , listen to what they are saying, and know how to respond appropriately
  • Don’t keep your players waiting. Always acknowledge them immediately, even if a proper response may take a little more time.

Contact Us to Start Your Gaming Company Today

Fast Offshore has worked in the gaming business for over 23 years . During that time we’ve assisted with incorporation of gaming companies, right through the business, fiscal, and licensing matters. To draw on our experience and to benefit from our advice, contact us today to find out more.

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Network Game Centers

BUSINESS PLAN

POWERPLAY GAMING, LLC

11007 Woodworth Avenue, Suite 101 Portland, Oregon 97209

This business proposal seeks to set up Network Game Centers, called PowerPlay Gaming, throughout the United States. By setting up networks of computers or consoles that are able to truly capture and show off the programming expertise and high quality of presentation produced by game software, gamers will be able to enjoy playing a new and exciting game without having to purchase the equipment and software associated with a high quality gaming experience.

EXECUTIVE SUMMARY

Company summary, business description, market analysis summary, strategy & implementation summary, management summary, financial plan.

The worldwide video gaming industry generates in excess of $50 billion per year according to the "Executive Interview Series: The State of the Game Market 2001" report published by DFC Intelligence. Most of this revenue is through the sale of hardware and software associated with video games.

A new avenue of additional income connected with the video games industry that has remained largely unexplored throughout the world is that of Network Game Centers (NGC). Our NGC will be named PowerPlay Gaming.

In essence, an NGC's business model exploits the fact that gamers can enjoy playing a new and exciting game without having to purchase the equipment and software associated with a high quality gaming experience. A computer or console that is able to truly capture and show off the programming expertise and high quality of presentation produced by game software developers these days requires a high-end machine with special graphics and sound components as well as other costly hardware prerequisites. These machines are therefore prohibitively expensive and the video gaming fan is relegated to a sub-optimal gaming experience on his affordable but medium to low-end computer at home.

Another factor that is key to the success of the NGC model is the fact that all games, whether computers or otherwise, are vastly more enjoyable when played in groups. Group dynamics is a field of psychology that has been studied endlessly and will not be mentioned in detail here, but it is suffice to say the following: The "challenge" factor that is evident in group games and sports is by far one of the most powerful of driving forces. The camaraderie and sense of satisfaction and achievement that is derived from playing a team sport or group game is not comparable to any other feeling and is now a well established form of entertainment in the world. The NGC business model exploits exactly this group dynamic, resulting in a proven, profit-generating business with a low investment/low operating cost.

The huge market potential and virtually instant return on investment for these entertainment venues is evident from its phenomenal growth rate in both the United States and abroad.

This business proposal therefore seeks to set up NGCs, called PowerPlay Gaming, throughout the United States with an aim to be the best in each selected city and therefore maximizing the profits earned from it.

The main objectives of the development of these new venues are:

  • Capitalize on excellent opportunity to extract maximum revenue in a competitor-less market.
  • To launch the NGC with a highly targeted publicity campaign in the summer of 2003.
  • To maintain tight control of costs, operations, and cash flow through diligent management and automated computer control.
  • To maintain a high standard of product and service provided in the NGC.
  • To exceed $150,000 in annual sales by the third year of plan implementation.

The keys to success in achieving our goals are:

  • Be the first in the market to provide a new entertainment service that has broad appeal.
  • Provide an exceptional service and product that leaves an impression.
  • Consistent entertainment atmosphere and product quality.
  • Managing our internal finances and cash flow to enable upward capital growth.
  • Strict control of all costs at all times, without exception.

The key elements of PowerPlay Gaming's concept are as follows:

  • "War Games" based themes—The company will focus on themes that have mass appeal. A variety of games will be available though.
  • Distinctive design features—The NGC will be characterized by elaborate interior decoration that simulates a "Control Center" as can be seen in any Hollywood movie based on military or Space Travel themes.
  • Location, location, location—One of the major strengths that the NGC will have is its careful choice of location in a high visibility area with plenty of parking as well as complementary businesses close by, such as restaurants.
  • Variety—The NGC will provide a variety of games in its software portfolio to cater to the diverse tastes of people.
  • Quality Hardware—The NGC will provide high-end hardware on which the network and its components will run, to ensure a first-class entertainment experience.
  • Exceptional service—In order to reach and maintain a unique image of quality, the NGC will provide attentive and friendly service through the careful selection of service personnel, and will also invest in the training and supervision of its employees. We estimate two to three staff for an NGC unit to be sufficient and will ensure that their needs are well looked after.

Company Ownership

PowerPlay Gaming will be a privately held LLC, the details of which have not been solidified as of the date of this publication.

Start-up Summary

The company will seek a loan from either a local bank or a venture capitalist for start-up purposes for PowerPlay Gaming.

Funds needed to accomplish goal referenced above will be $50,000. The applicants will require the entire $50,000 to finish project build-out.

We will utilize the anticipated loans in the amount of $50,000 to build out the approximate 500-square-foot space and purchase and set up equipment necessary for start-up of the company. It also will pay for miscellaneous expenses associated with key personnel for the first couple of months. The following tables and charts illustrate the capital requirements.

Network Game Centers

With the emergence of new network technology and high-speed infrastructure around the world, more and more game developers are realizing the huge demand for multiplayer network-based games and have been channeling funds into developing games that can meet this unprecedented demand. These developments have brought a unique opportunity to capitalize on the nature of these games through the model of an NGC. The fact that Internet speed is largely dependent on expensive infrastructure means that a local area network will still be the fastest network available for game playing. This translates into faster and smoother game-play with no jerkiness or delays.

PowerPlay Gaming will provide an exciting environment in which people can play games competitively against each other. The challenge of going up against one's friends in the same place is a far more enjoyable experience than playing against a computer's artificial intelligence or against an anonymous player on the Internet. In the NGC environment, a customer is able to see his opponents as well as converse with them during the game, making for a much more "interactive" environment as opposed to the confines of their PC at home. The gamer also will be able to enjoy the camaraderie that goes with any group activity that usually is not available at home.

The concept and management of PowerPlay Gaming has been well received in the Portland, Oregon, area where hundreds of customers regularly come to engage in a battle of wits against their friends and other NGC customers.

The NGC phenomenon is due to the fact that the challenge factor proves to be very addictive as in any sport or game, and the fact that there are no physical limitations on the players opens up the market for players of all ages, sizes, physical and mental ability to play against one another. A ten-year-old child can easily be the best player in a match against other players much older and wiser. The same goes for players less fit and less physically active than other "sporty" competitors. PowerPlay Gaming provides a level playing field for all.

The fact that this is a new and exciting form of entertainment is especially attractive in cities that are limited in the variety of entertainment that is available for the young generation.

The demographics and entertainment market in Portland, Oregon, appear to be ripe for which PowerPlay Gaming to flourish. No doubt that with the right set-up and marketing, it will prove to be so.

Market Segmentation

We see PowerPlay Gaming as appealing to three major market segments. Fortunately, the long hours of operation help the company lend itself to multiple segment appeal. Our market segmentation scheme allows some room for estimates and nonspecific definitions.

  • Childless Young Professionals —Due to the nature of the games, PowerPlay Gaming will appeal to primarily single young males that will enjoy a group activity after working hours to blow away the stresses of the day. Video games are certainly not the domain of children anymore as evident in the demographics of people who have purchased the Sony Playstation consoles (I and II) as well as more recently, Microsoft's X-Box. Up to 75% of NGC customers are single adult males between the ages of 18 and 35. This segment also spends the most amount of time (and money) in the NGCs (10 - 20 hours a week).
  • College Students —Although less affluent than young professionals, college and high school students also make up a significant portion of an NGC's customer base. These are people that are just starting to enjoy social activities that were not available to them as youngsters. Their spending power may be less than our first group but makes up a significant portion of revenues since they are able to visit the NGC at earlier times than members of our first group due to their working hours. This segment makes up roughly 20% of the NGC's patronage.
  • Children —Although at first glance it would seem that children would have the most significant part to play in the success of PowerPlay Gaming, the reality is that children's time in an NGC is limited largely due to the restrictions placed on them by parents as well as a lack of money available to spend on a daily basis. Parents would rather buy their child a console to play within the safety of their homes where they can "keep an eye" on them. Having said that, this segment does prove to be useful in revenue terms to fill PowerPlay Gaming for a short time after school hours when the parents allow their children some flexibility to meet with their friends for some harmless fun. A variety of games are available to meet the needs of these younger customers that make up roughly 5% of an NGC's customer base.

Target Market Segment Strategy

Our strategy is based on serving our niche markets exceptionally well. The pure gaming enthusiast, the group activity buffs, as well as children, can all enjoy the NGC experience.

The marketing strategy is essential to the main strategy:

  • Emphasize exceptional service.
  • Create awareness of PowerPlay Gaming's high quality hardware.
  • Focus on our target markets.

We must charge appropriately for the high-end, high-quality service we offer as well as take advantage of the fact that we will be the best in the market. Our revenue structure will be higher (but not prohibitively so) than Internet Cafés (the closest comparison to this kind of business) due to the fact that our computers and network will be of a much higher quality and specification than that required in Internet Cafés.

Part of the superior experience we will offer will be the ease of use of the computers since the software we will use to manage the center will store all the customer's customized setups of the keyboard and multimedia features. Customers will not have to go through the hassle of setting up their computers to their exact requirements every time they come back to us. Logging into the system with their user name and password will set their computer back exactly to their previously stored settings. The software also will ensure that they can pick up their previously saved games exactly where they left off since most games require several hours to complete.

Special pricing structures also will exist to accommodate groups of players and "off peak" days of the week and hours of the day. This will ensure that the maximum revenue can be obtained from each working day of PowerPlay Gaming and will be an added incentive for customers to utilize the center to its fullest.

Tournaments will be held on a regular basis with sponsored prizes to appeal to the competitive streaks of groups and individuals as well as a "Top Ten Players" list that will be analyzed using specialized software. A prizes and incentives scheme will be associated with this list. These elements will further ensure that customers come back to our establishment repeatedly.

Service Business Analysis

Video games have significantly impacted young peoples' lifestyles and the economy in every developed country in the 1990s. Entrancing players with fantasy, visual effects, and addictive game play, video games are still one of the highest cash flow businesses in the world. The average gamer will spend three to four hours every day in this type of activity and will spend an average of $9 to $15 every time. As we move further into the new millennium, this trend shows no signs of declining.

The typical NGC of our style is open from 12:00 P.M. to 12:00 A.M. , and within this time frame, the NGC can achieve gross revenues anywhere from $500 to $1,000 daily. The primary sources of revenue in an NGC of this type are high volume traffic and regular, long-staying customers who play for 4 to 5 hours every day. In addition to gaming revenues, we also have an option to generate substantial revenues from food and beverage sales should the right environment be attained and a customer need perceived.

Additionally, the NGC industry is shifting towards a more entertainment-oriented concept. Customers of these venues are not only offered a unique gaming experience, but also a place to participate in additional exciting events through interactive contests, theme nights, and other events. We intend to heavily utilize entertainment-oriented marketing in an effort to withstand the perpetual shift in trends and cater to as large a client base as possible.

NGCs are extremely self-sufficient with little support required from outside suppliers. Aside from the occasional maintenance of computer equipment and replacement of breakables (such as keyboards, mice, and headphones), the only regular supply that is required for the normal and profitable operation of the NGC is electricity.

In Portland, Oregon, all major brands of computer equipment and peripherals are readily available at ever cheapening prices due to heavy competition. In addition, preferential pricing can be obtained for breakables from local suppliers due to the fact that our business has a higher than normal rate of peripheral damage and therefore replacement requirement.

Business Participants

The NGC will be part of the audiovisual entertainment industry, which includes several kinds of businesses:

  • Cinema and Rented Movies —This genre usually appeals to the same demographic clientele as an NGC. This same client base dictates that the average price structure be comparable in order to create "regulars."
  • Home-based Console and Computer Games —Although on paper a significant competitor, an NGC provides a form of entertainment not available to the home gamer. This stems from the fact that home gaming is a solitary or at best small group activity whereas in an NGC, gaming can be enjoyed with groups of up to 20 in our proposed venture.
  • Internet Cafés —Primarily used for more passive activities such as E-Mail, information gathering and "chatting," an NGC's main customer base will come from those people that are already quite used to paying for their computer time and are familiar to the concept of Computer Cafés.

Main Competitors

Manhunt—Cedar Hills 30+ PCs Space Raiders—Walnut Grove 30+ PCs Rivenated—Metzger 30+ PCs

PowerPlay Gaming's competition lies mainly with other forms of audiovisual entertainment as well as group activities such as sports. We need to effectively market our concept and ensure word-of-mouth advertising by providing a first-class entertainment experience, while maintaining the idea that playing computer games in groups can be a lot of fun. Our polling has indicated that consumers think of quality, reliability, atmosphere, and price respectively. Additionally, price was frequently mentioned by pointing out that if the former concerns are present then they are willing to pay more for the experience.

The main indirect competitors of the NGC will be:

Cinema & Video Rentals

Not as regular an activity as going to an NGC since new movies are shown at a minimum of every week and therefore a customer may spend on average two to four hours every two weeks or so going to the cinema.

Home Video Games

A solitary activity and one which is easily surpassed in terms of appeal by hardware at an NGC that is far superior to that affordable by the normal gamer. Further, the group element of an NGC proves to be far more appealing than playing by oneself.

Internet Cafés

A very indirect competitor since the services offered are very different to those at a dedicated gaming establishment.

In order to place emphasis on exceptional, reliable entertainment quality, our main tactics are bi-monthly servicing of computers, including the replacement of faulty peripherals as needed. We also will upgrade computers as required according to the recommended specifications of game publishing companies.

Our second strategy is emphasizing customer satisfaction. We will ensure that the customer is never allowed to be bored with the activities available at PowerPlay Gaming. Not only will he always have the latest and most popular games available to play, but he will be able to take part in competitions. A close eye will be kept on gaming magazines and Internet sites to ensure that we are always first to market with new and exciting games that are released in the United States and Europe.

Our promise fulfillment strategy may be our most important. The necessary tactics are friendliness of staff, long-lasting relationships, ongoing maintenance, and attention to detail, especially after popularity has been established and new competitors enter the market. Through empowerment of service employees to solve problems and reward regular customers without waiting for management consultation, we create a win-win situation for the customer and the NGC.

Continuous and never-ending improvement is the order of the day through our "on the job" training sessions and regular meetings. Since value is equal to service rendered minus the price charged, it is crucial to go beyond the mere supplying of computers and games—you have to create a long-lasting impression.

  • Emphasize reliability—We MUST prove to our customers that perfectly functioning computers and associated equipment should be expected as part of the gaming experience. We will differentiate ourselves from the mediocre NGCs when they surely arrive in the market.
  • Emphasize an entertaining experience—By assuring that all guests will enjoy themselves every time without a lapse in reliability, we will be securing market share through repeat business.
  • Focus on a variety of rewarding activities—Our marketing, promotions, group activities, and competitions will ensure that people do not get bored with our service.
  • Differentiate and fulfill the above promises.

We cannot just market and sell a new entertainment concept; we must actually deliver on our promise of quality, service, and a unique gaming experience. We need to make sure we have the fun and service-intensive staff that we claim to have.

Marketing Strategy

Through friendly and courteous service, we will build relationships with our regular customers to ensure that when competition does arrive, our regulars will be reluctant to go to them due to their personal ties with us.

Advertising budgets, tournaments, and promotions are ongoing processes of management geared to promote the brand name and keep at the forefront of the NGC industry in Portland, Oregon.

We will depend on newspaper advertising as well as leaflet distribution at places of gathering of our customer base to promote our establishment. Our strategies and practices will remain constant, as will the way we promote ourselves:

  • Advertising—We will be developing a core-positioning message.
  • Grand Opening—We will concentrate a substantial portion of our early advertising budget towards the "Grand Opening Event."
  • Direct Marketing—We will directly market in areas of high traffic for our main market segment such as cinemas and restaurants.

PowerPlay Gaming will create an identity-oriented marketing strategy with executions particularly in print media, in-store promotions at supermarkets and video stores.

A grand opening event will be held to launch PowerPlay Gaming in the summer of 2003. A newspaper advertising blitz will precede the event for two weeks, with ambiguous teasers about an "event like no other" in the city's history and the forthcoming opening date. Contests will be held through the newspaper and handouts, giving away V.I.P. passes (coupons) to the event while at the same time creating excitement about the opening. The opening date is tentative at this point and dependent upon network set-up completion. The budget for the event will be $500, and the milestone date will parallel the available opening date.

Achievement of the following campaigns will be measured by the polling of customers as to how they heard of PowerPlayGaming for the first ninety days of operation. Future advertising budget adjustments will be made as the results dictate.

We will be running regular newspaper ads and direct-mail campaigns to create brand awareness. Our newspaper ads will be concentrated strongly in Portland's major newspapers. Through attractive design, a teaser campaign, and the use of catchy phrases, we hope to obtain intellectual ownership of our target market segments.

We will advertise directly to our regular customers through e-mail and normal post as well as in areas where our customers regularly gather, such as the cinema through the use of fliers and leaflets. Promos such as "introduce a new customer and get an hour free" would be relatively inexpensive from an advertising standpoint and require limited ongoing maintenance and expense. Ads also will go into the college newspapers for the local campuses.

Jessica Miller will be responsible for all advertising and promotions activities with consultation from Mark Stafford. The monthly budget for advertising and promotions activities will be set once the levels of "word-of-mouth" advertising and business levels are assessed.

Shirts, baseball caps, and bumper stickers bearing the NGC's logo also will be eventually marketed, as well as given away as prizes, in order to further spread brand awareness. All the partners will approve artistic design but Jessica Miller will negotiate the supply.

Sales Forecast

Our forecast for income for the first year of operation is based on an NGC with 20 PCs and the lowest hourly sales price of $3.00.

Competitive Pricing

The price will be brought down from a relatively high price of $5 per hour to $4.50 to $4 per hour in order to maximize revenue during the process of lowering the prices to market norms. The lowest price will be maintained at $3 per hour with any additional cut in prices by competitors battled with an aggressive marketing strategy.

The time frame for the price reductions will be decided upon after analyzing the situation at the time and will be done so with every resistance tactic including the sales of packages for bulk purchase, group discounts, and other such promotions that will keep us competitive, but maintain a higher average price for hours sold.

The company will have two managers with a common passion for this business and a firm commitment to realizing the vision, and share a common goal: to provide a unique and entertaining experience through state-of-the-art technology and exceptional service.

Management Team

Mark stafford, operations manager.

Stafford's specific responsibilities will lie primarily with the coordination of events and oversight of the operations as well as technical support and development of the NGC.

Jessica Miller, General Manager

Miller primarily will be responsible for the marketing and publicity with a view to developing the business in other areas. Specific responsibilities will be to manage the reinvestment of funds and coordinate marketing activities with Mark Stafford.

The positions of operations support staff, technical assistants, cleaners, etc. will be openly sought from the market nearer to the opening of the NGC.

Management Team Gaps

We believe we have a solid team constructed in order to cover the main points of the business plan for the first NGC. Management growth through training and exposure will be an ongoing component of PowerPlay Gaming's priorities.

However, we do realize that as we expand to other NGCs in the region (as is the long-term plan), we will require other managers and technicians to whom we can entrust the operations of this cash-based business. The candidates will be carefully chosen due to their backgrounds and personalities and through personal recommendations of their character.

The process of identifying suitable candidates for the General Manager's position will be ongoing as we expand our operations and any candidates identified will be hired as assistants and trained according to our requirements while under perpetual assessment as to their suitability for the job.

Personnel Requirements

The Personnel Requirements reflect the dual objective of providing an ample amount of service personnel to run the day-to-day operations of PowerPlay Gaming as well as to develop staff for future setups. Our headcount will remain at two to three employees (including the General Manager) at each NGC unless any unforeseen demands dictate otherwise.

Network Game Centers

The financial projections for this plan are presented in the tables and charts of the following subtopics.

Important Assumptions

The financial plan depends on important assumptions. The key underlying assumptions are:

  • We assume a slow-growth economy of five percent the first year, and three percent thereafter, without major recession.
  • We assume that price will be a key competitive element in the first three years of operations where competitors in the business will seek to cut into our business through price cutting.
  • We assume continued popularity of NGCs and the growing demand for high-energy, high-tech entertainment venues.
  • We assume that average daily customer usage of PCs is 3 hours per customer.
  • We assume that the NGC will be open daily between the hours of 12:00 P.M. to 12:00 A.M.

Break-even Analysis

The NGC Break-even Analysis formulas are presented in the text below.

Fixed Costs = $7,500 /month Debt Repayment = $1,000 /month (approximate)

Break Even Point = $8,500

Average Daily Revenue Required = $283.33 Minimum Daily Hours Sold Required = 283.33 / 3 = 94.44 hours Minimum Daily Hours Sold/PC Required = 94.44 / 20 = 4.72 hours Minimum Daily Customers Required = 94.44 / 3 = 31.48

Network Game Centers

Projected Profit and Loss

The table presents expected Profit and Loss figures for the coming years, based on the first year figures and a 10 percent growth in the market. The expenses have been overestimated for the table for the sake of remaining conservative and a drop in hourly price to reflect competition also has been incorporated in the calculation. We expect though, that the market will stabilize by the end of the third year of operation.

Network Game Centers

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Mobile Game Business Plan

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The mobile gaming industry is booming and is expected to grow even more rapidly in the coming years.

Developers and people with financial bandwidth are trying to capture this highly saturated market space to reap exceptional financial rewards. One needs a comprehensive business plan outlining every possible detail of the mobile gaming business to raise funds and work on its scalability.

Need help writing a business plan for your mobile game business? You’re at the right place. Our mobile game business plan template will help you get started.

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How To Write A Mobile Game Business Plan?

Writing a mobile game business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

Introduce your Business:

Start your executive summary by briefly introducing your business to your readers.

Market Opportunity:

Products and services:.

Highlight the mobile game services you offer your clients. The USPs and differentiators you offer are always a plus.

Marketing & Sales Strategies:

Financial highlights:, call to action:.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

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2. Business Overview

The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

Business Description:

Describe your business in this section by providing all the basic information:

Describe what kind of mobile game company you run and the name of it. You may specialize in one of the following mobile game businesses:

  • Independent game development
  • Mobile game development studio
  • Niche mobile game business
  • Describe the legal structure of your mobile game company, whether it is a sole proprietorship, LLC, partnership, or others.Explain where your business is located and why you selected the place.

Mission Statement:

Business history:.

If you’re an established mobile game service provider, briefly describe your business history, like—when it was founded, how it evolved over time, etc.

Future Goals

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

Target market:

Start this section by describing your target market. Define your ideal customer and explain what types of services they prefer. Creating a buyer persona will help you easily define your target market to your readers.

Market size and growth potential:

Competitive analysis:, market trends:.

Analyze emerging trends in the industry, such as technology disruptions, changes in customer behavior or preferences, etc. Explain how your business will cope with all the trends.

Regulatory Environment:

Here are a few tips for writing the market analysis section of your mobile game business plan:

  • Conduct market research, industry reports, and surveys to gather data.
  • Provide specific and detailed information whenever possible.
  • Illustrate your points with charts and graphs.
  • Write your business plan keeping your target audience in mind.

4. Products And Services

The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:

Describe your services:

Features & functionality:.

Highlight the key features and functionalities of the game. This may include unique features like,

  • Multiplayer access
  • In-app purchases
  • virtual currency system
  • Social interaction

Describe your products

: Mention the products you sell through your mobile game business. It can be merchandise like apparel, collectibles, or accessories to increase the fandom and brand value.

Quality measures

: This section should explain how you maintain quality standards and consistently provide the highest quality service.

Additional Services

In short, this section of your mobile game plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

Unique Selling Proposition (USP):

Define your business’s USPs depending on the market you serve, the equipment you use, and the unique services you provide. Identifying USPs will help you plan your marketing strategies.

Pricing Strategy:

Marketing strategies:, sales strategies:, customer retention:.

Overall, this section of your mobile game business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your mobile game business, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

Staffing & Training:

Operational process:, technology & equipment:.

Include the list of equipment and machinery required for mobile game business, such as computer systems, development technology, office equipment, etc.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your mobile game business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

Founders/CEO:

Key managers:.

Introduce your management and key members of your team, and explain their roles and responsibilities.

Organizational structure:

Compensation plan:, advisors/consultants:.

Mentioning advisors or consultants in your business plans adds credibility to your business idea.

This section should describe the key personnel for your mobile game services, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

Profit & loss statement:

Cash flow statement:, balance sheet:, break-even point:.

Determine and mention your business’s break-even point—the point at which your business costs and revenue will be equal.

Financing Needs:

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

  • Add a table of contents for the appendix section to help readers easily find specific information or sections.
  • In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
  • Provide data derived from market research, including stats about the mobile game industry, user demographics, and industry trends.
  • Include any legal documents such as permits, licenses, and contracts.
  • Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your mobile gaming business plan should only include relevant and important information supporting your plan’s main content.

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This sample mobile game business plan will provide an idea for writing a successful mobile game plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our mobile game business plan pdf .

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Frequently asked questions, why do you need a mobile game business plan.

A business plan is an essential tool for anyone looking to start or run a successful mobile game business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your mobile game company.

How to get funding for your mobile game business?

There are several ways to get funding for your mobile game business, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

  • Bank loan – You may apply for a loan in government or private banks.
  • Small Business Administration (SBA) loan – SBA loans and schemes are available at affordable interest rates, so check the eligibility criteria before applying for it.
  • Crowdfunding – The process of supporting a project or business by getting a lot of people to invest in your business, usually online.
  • Angel investors – Getting funds from angel investors is one of the most sought startup options.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your mobile game business?

There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your mobile game business plan and outline your vision as you have in your mind.

How detailed should the financial projections be in my mobile game business plan?

The level of detail of the financial projections of your mobile game business may vary considering various business aspects like direct and indirect competition, pricing, and operational efficiency. However, your financial projections must be comprehensive enough to demonstrate a comprehensive view of your financial performance.

Generally, the statements included in a business plan offer financial projections for at least the first three or five years of business operations.

What key components should a mobile game business plan include?

The following are the key components your mobile game business plan must include:

  • Executive summary
  • Business Overview
  • Market Analysis
  • Products and services
  • Sales and marketing strategies
  • Operations plan
  • Management team
  • Financial plan

Can a good mobile game business plan help me secure funding?

Indeed. A well-crafted mobile game business will help your investors better understand your business domain, market trends, strategies, business financials, and growth potential—helping them make better financial decisions.

So, if you have a profitable and investable business, a comprehensive business plan can certainly help you secure your business funding.

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Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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gaming company business plan

  • Category: Announcements

Xbox’s Promise to Bring More Games to More Players Around the World

  • Jeff Rubenstein, Xbox Wire

gaming company business plan

Today, on a special edition of the Official Xbox Podcast, we shared an update on plans to continue to bring more games to more people around the world, with the exciting news that the first Activision Blizzard game on Xbox Game Pass will be Diablo IV , beginning March 28.

Phil Spencer, Sarah Bond, and Matt Booty also shared the vision on game exclusivity, the future of Xbox hardware, and the overall Xbox promise. There’s a lot to talk about, so we encourage you to watch the full episode here:

With the combined creativity across Team Xbox, players can expect an incredible 2024 with the likes of Senua’s Saga: Hellblade II , Indiana Jones and the Great Circle , Avowed , Ara: History Untold , Towerborne and more coming your way, alongside continued updates for our blockbuster franchises Call of Duty , Minecraft , Forza , The Elder Scrolls Online and Microsoft Flight Simulator.

There will be even more to play as we begin to fulfill our commitment to offer Activision and Blizzard games with Game Pass, both new releases and classic games from its legendary catalog. We’re excited to bring more of the biggest games to our 34M XGP subscribers. Diablo IV will be playable on Xbox and PC for Xbox Game Pass Ultimate, PC Game Pass, and Xbox Game Pass for Console subscribers on March 28! This is only the start of Xbox players being able to enjoy Activision and Blizzard games on Game Pass – we look forward to sharing more soon.

Our combined studio teams already ship some of the biggest franchises and critically-acclaimed adventures across multiple platforms: Minecraft , Call of Duty , Overwatch , Diablo , The Elder Scrolls Online , and more have built communities across consoles, PC, and mobile. Likewise, Xbox Game Studios and Bethesda have brought dozens of games to Steam alongside Xbox consoles on launch day; the teams at Xbox have extensive experience supporting multiple platforms, while continuing to invest heavily in our studios, our consoles and services.

Indeed, our games are reaching more players than ever; across Activision, Bethesda, Blizzard, King, and Xbox Game Studios, we reach hundreds of millions of players across console, PC, and mobile.

To ensure long-term success for both Xbox and the industry as a whole, we must continue to evolve. Today we announced that we will expand the communities we reach: we are currently in the process of bringing four Xbox games to other platforms. These are titles which have been available to Xbox players for at least a year, including hidden gems that deserve to be experienced more widely, and live service games whose communities will benefit from welcoming even more players. We will share more details on these titles soon.

By bringing these games to more players, we not only expand the reach and impact of those titles, but this will allow us to invest in either future versions of these games, or elsewhere in our first-party portfolio. There is no fundamental change to our approach on exclusivity. 

Likewise, our commitment to game preservation is unwavering. Xbox players should have confidence in building your digital library in the Xbox ecosystem.  We will continue to reward that with the most robust, player-friendly experiences, including backwards compatibility, cross-play, cross-save progression, convenient cloud gaming, and more. Xbox consoles will continue to provide a flagship experience for players; it’s where you get the best value and convenience, it’s where Game Pass provides unprecedented access to an ever-evolving library of games. To be clear: Game Pass will continue to be only available on Xbox platforms. 

This is what it means to be part of Xbox:

  • The biggest games in the world will be on Xbox.     
  • Our games will come to Game Pass day one . 
  • A robust and innovative multi-year hardware roadmap
  • Compatibility with your library is a priority , inclusive of cross-play, cross-save, and robust cloud features.  
  • Xbox will continue to help game creators find the biggest audience possible.

Whether you’ve been with us since 2001, recently joined Game Pass to enjoy games like Starfield or Palworld , or are looking forward to the next season of Call of Duty , the creative teams at Xbox are stronger together – no matter where you play. Xbox will be around for decades to come – we hope you’ll join us on this journey.

Editor’s Note (February 16) : We’ve clarified the Game Pass subscriber plans where Diablo IV will be playable starting on March 28, 2024.

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  1. Simple Gaming Business Plan Template

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COMMENTS

  1. Gaming Lounge Business Plan Template [Updated 2024]

    Traditionally, a marketing plan includes the four P's: Product, Price, Place, and Promotion. For a gaming lounge business plan, your marketing strategy should include the following: Product: In the product section, you should reiterate the type of gaming lounge company that you documented in your company overview.

  2. Business Plan for Video Game Studio

    The plan not only showcases your game (s) but provides a comprehensive overview of your company, team, resources, finances, marketing strategies, player community, operations, and development processes. The purpose of a business plan is to present a clear and concise picture of your studio, from its past and current operations to its future plans.

  3. How To Write a Business Plan for Gaming Company in 9 Steps: Checklist

    August 18, 2023 By Henry Sheykin Resources On Gaming Company Financial Model Business Plan Value Proposition One-Page Business Plan SWOT Canvas Gaming has become one of the most lucrative industries in the world, with the global gaming market expected to reach a value of $365.1 billion by 2022.

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    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. Immigration Business Plan

  5. The #1 Game Business Plan Template & Guidebook

    1. Describe the Purpose of Your Game Business. The first step to writing your business plan is to describe the purpose of your game business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers' problems.

  6. Free Video Game Business Plan Example and Template

    Initial game development: $500,000 Total initial funding needed: $1,400,000 Sales Channels Steam Xbox Game Store PlayStation Store Nintendo eShop Direct website sales Marketing Activities

  7. Simple Gaming Business Plan

    Gaming Gradient Gradients Green Plan Tech Technology Create a vibrant gaming business plan and other processes with this editable Simple Gaming Business Plan Template. You can easily customize it within minutes for an eye-catching design.

  8. How to Start a Video Game Company in 2024

    Business Overview: Describe your company's specialization in video game development, including genres, platforms (like PC, consoles, or mobile), and player experiences. Product and Services: Detail the types of games you plan to develop, such as action, strategy, or educational games, and additional services like game updates or community ...

  9. Mastering Video Game Business Plans: Your 9-Step Checklist!

    Value Proposition One-Page Business Plan SWOT Canvas 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.

  10. How to Start a Video Game Company

    Develop a business plan. Drafting a business plan is a great way to sort out how your company will run. A business plan is a document containing the goals and procedures governing your business. Preparing Your Video Game Company for Launch. Once the planning is complete, you can start dotting your i's and crossing your t's when it comes to the ...

  11. How to Build a Video Game Company (Step by Step)

    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?

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

    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.

  13. How to Start a Profitable Game Business [11 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.

  14. How to Start a Video Game Company

    Start a video game company by following these 10 steps: Plan your Video Game Company Form your Video Game Company into a Legal Entity Register your Video Game Company for Taxes Open a Business Bank Account & Credit Card Set up Accounting for your Video Game Company Get the Necessary Permits & Licenses for your Video Game Company

  15. How to start a gaming business in 7 steps

    Your business plan will serve as a roadmap for your gaming business and help you secure financing if needed. Consider including the following sections: Executive summary: A concise overview (otherwise known as a concept statement) of your gaming business concept, mission and key objectives.

  16. ESports Business Plan: Guide & Template (2024)

    If you are planning to start a new online esports or gaming business, the first thing you will need is a business plan. Use our sample esports business plan created using upmetrics business plan software to start writing your business plan in no time.. Before you start writing your business plan for your new online esports or gaming business, spend as much time as you can reading through some ...

  17. Video Game Store Business Plan [Sample Template for 2022]

    Why Start a Video Game Store? Starting a video game store business is just like starting any other retail business, and it will require startup capital, planning (feasibility studies, market survey, budgeting), and of course time. A video game store retails different types of video games and accessories.

  18. How to Start Your Gaming Company: Complete Guide

    GOALS: Your business plan should start with your goals, what you want to achieve, and how. It should also drill down into who your target markets are, where they are located, what they are interested in, and of course, what kind of games they are into. COMPETITORS: This is also a good time to check out the competition.

  19. Writing a Business Plan for Independent Game Ventures

    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 ...

  20. How to Write a Business Plan for a Mobile Gaming Company

    Business Planning for a Mobile Gaming Company: Test Your Product "Perhaps better than any other industry, the gaming industry is really good at getting a product out there for consumers to...

  21. Network Game Centers Business Plan

    Network Game Centers BUSINESS PLAN POWERPLAY GAMING, LLC 11007 Woodworth Avenue, Suite 101 Portland, Oregon 97209 This business proposal seeks to set up Network Game Centers, called PowerPlay Gaming, throughout the United States.

  22. Business Plan for Video Game Studio

    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 ...

  23. Mobile Game Business Plan [Free Template

    Here are a few tips for writing the market analysis section of your mobile game business plan: Conduct market research, industry reports, and surveys to gather data. Provide specific and detailed information whenever possible. Illustrate your points with charts and graphs. Write your business plan keeping your target audience in mind. 4.

  24. Global annual investment volume in gaming companies 2023

    In 2023, there were 616 disclosed investments in video gaming companies worldwide, representing a 35 percent decline in volume from the 951 investments in video game companies in the previous year.

  25. Xbox's Promise to Bring More Games to More Players Around the World

    Today, on a special edition of the Official Xbox Podcast, we shared an update on plans to continue to bring more games to more people around the world, with the exciting news that the first Activision Blizzard game on Xbox Game Pass will be Diablo IV, beginning March 28.. Phil Spencer, Sarah Bond, and Matt Booty also shared the vision on game exclusivity, the future of Xbox hardware, and the ...