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Video Game Business Plan

Start your own video game business plan

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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How to Start a Video Game Company

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

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

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

Start a video game company by following these 10 steps:

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

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

Exploring your options? Check out other small business ideas .

STEP 1: Plan your business

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

What will you name your business?

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

How much can you charge customers?

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

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

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

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

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

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

Want some help naming your video game company?

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

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

What are the ongoing expenses for a video game company?

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

Who is the target market?

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

How does a video game company make money?

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

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

How much profit can a video game company make?

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

How can you make your business more profitable?

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

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

STEP 2: Form a legal entity

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

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

Form Your LLC

Read our Guide to Form Your Own LLC

Have a Professional Service Form your LLC for You

Two such reliable services:

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

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

STEP 3: Register for taxes

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

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

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

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

STEP 4: Open a business bank account & credit card

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

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

Open a business bank account

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

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

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

Get a business credit card

Getting a business credit card helps you:

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

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

STEP 5: Set up business accounting

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

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

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

State & Local Business Licensing Requirements

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

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

Trademark & Copyright Protection

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

Learn more about trademark and copyright protection

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

STEP 7: Get business insurance

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

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

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

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

STEP 8: Define your brand

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

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

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

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

How to promote & market a video game company

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

How to keep customers coming back

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

STEP 9: Create your business website

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

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

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

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

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

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

STEP 10: Set up your business phone system

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

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

Recommended Business Phone Service: Phone.com

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

Is this Business Right For You?

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

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

Take our Entrepreneurship Quiz to find out!

Entrepreneurship Quiz

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

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

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

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

What is the growth potential for a video game company?

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

TRUiC's YouTube Channel

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

Take the Next Step

Find a business mentor.

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

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

Learn from other business owners

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

Resources to Help Women in Business

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

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

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

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

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

How and when to build a team

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

Useful Links

Industry opportunities.

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

Real World Examples

• Avalanche Studios

Further Reading

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

Have a Question? Leave a Comment!

• Business Ideas
• Registered Agents

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

Updated:   February 9, 2024

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

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

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

1. Conduct Video Game Market Research

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

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

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

Keys to succeeding in the highly competitive space include:

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

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

2. Analyze the Competition

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

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

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

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

3. Costs to Start a Video Game Business

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

Start-Up Costs

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

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

Ongoing Costs

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

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

4. Form a Legal Business Entity

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

Sole Proprietorship

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

Partnership

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

Limited Liability Company (LLC)

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

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

Corporation

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

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

5. Register Your Business For Taxes

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

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

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

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

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

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

6. Setup Your Accounting

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

Accounting Software

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

Hire an Accountant

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

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

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

Open a Business Bank Account

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

Apply for a Business Bank Account

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

7. Obtain Licenses and Permits

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

On the federal level, you may need to obtain:

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

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

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

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

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

8. Get Business Insurance

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

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

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

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

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

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

9. Create an Office Space

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

Home Office

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

Coworking Office

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

Commercial Office

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

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

10. Source Your Equipment

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

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

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

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

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

11. Establish Your Brand Assets

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

Get a Business Phone Number

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

Design a Logo

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

Print Business Cards

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

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

Buy a Domain Name

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

Design a Website

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

12. Join Associations and Groups

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

Local Associations

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

Local Meetups

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

Facebook Groups

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

13. How to Market a Video Game Business

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

Personal Networking

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

Digital Marketing

For digital marketing:

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

Traditional Marketing

For traditional marketing:

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

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

14. Focus on the Customer

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

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

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

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

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Business Plan Template for Video Game

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

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

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

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

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

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

Business Plan Template for Video Game Benefits

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

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

Main Elements of Video Game Business Plan Template

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

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

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

How To Use Business Plan Template for Video Game

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

1. Define your vision and mission

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

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

2. Conduct market research

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

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

3. Develop a marketing and sales strategy

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

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

4. Create a financial plan

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

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

5. Outline the development process

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

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

6. Set performance metrics and milestones

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

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

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

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

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

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

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

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

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

• by Zachary Strebeck

So you want to start an indie game studio ?

First thing’s first:

You need a business plan.

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

Let’s get started.

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

Why do you need a business plan.

You need to realize one thing:

Creating indie games is an extremely tough business.

Most games will fail.

That’s right. Read it again.

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

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

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

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

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

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

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

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

Indie games are different.

They’re different than other businesses:

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

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

In fact, most businesses have many things in common.

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

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

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

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

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

What can indie studios learn from this?

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

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

There’s a very good reason for this:

It doesn’t make much sense.

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

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

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

Keep reading!

Different models for business plans

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

The main ones are:

The Lean Canvas

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

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

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

A traditional Business Plan

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

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

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

Check it out here.

Working with partners – what are your expectations?

There’s one more important step:

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

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

If they do match – that’s great!

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

What are the questions? Something close to the following:

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

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

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

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

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Table of Contents

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How to Start a Profitable Game Business [11 Steps]

By Nick Cotter Updated Feb 02, 2024

Business Steps:

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

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

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

Are game businesses profitable?

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

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

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

How does a game business make money?

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

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

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

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

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

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

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

Resources to help get you started:

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

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

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

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

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

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

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

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

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

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

What does it cost to start a game business?

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

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

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

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

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

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

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

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

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

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

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

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Video Game Business Plan Sample

DEC.05, 2014

Introduction

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

Frequently asked questions of game company business plan

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

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

Executive Summary

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

Company Overview

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

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

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

Market Research

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

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

Marketing plan

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

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

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

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

Financial Projections

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

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

How to order writing business plan game company?

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

Download Video Game Business Plan Sample in pdf

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

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Start a Video Game Company

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

VIDEO GAME COMPANY

Related business ideas, discover your perfect domain, video game mini business plan, business idea: video game company, expected percent margin:, earnings expectations:, actions to hit those numbers:, game development:, marketing and customer acquisition:, sales and monetization:, cost control:, business operations:, not what you had in mind here are more ideas, grab your business website name, step 1: determine if starting a video game company is right for you, breakdown of startup expenses, breakdown of ongoing expenses, examples of ways to make money, step 2: naming the business, researching the name, registering the name, finalizing the name, step 3: establishing a business structure, registering the business, obtaining licenses and permits, establishing a bank account, step 4: obtaining licenses and permits, applying for licenses and permits, paying for licenses and permits, receiving licenses and permits, step 5: creating a business plan, outlining goals and objectives, establishing a budget, step 6: securing funding, preparing a pitch, negotiating terms, step 7: setting up the office, choosing the right location, purchasing necessary equipment, step 8: hiring employees, establishing a team, setting up a workplace, establishing a salary structure, step 9: marketing the business, leveraging social media, advertising, public relations, analyzing results, explore more categories, take the next steps.

How to write a business plan for a video games shop?

Writing a business plan for a video games shop can be an intimidating task, especially for those just starting.

This in-depth guide is designed to help entrepreneurs like you understand how to create a comprehensive business plan so that you can approach the exercise with method and confidence.

We'll cover: why writing a video games shop business plan is so important - both when starting up, and when running and growing the business - what information you need to include in your plan, how it should be structured, and what tools you can use to get the job done efficiently.

Let's get started!

In this guide:

Why write a business plan for a video games shop?

What information is needed to create a business plan for a video games shop.

• What goes in the financial forecast for a video games shop?
• What goes in the written part of a video games shop business plan?
• What tool can I use to write my video games shop business plan?

Understanding the document's scope and goals will help you easily grasp its structure and content. Before diving into the specifics of the plan, let's take a moment to explore the key reasons why having a video games shop business plan is so crucial.

To have a clear roadmap to grow the business

Small businesses rarely experience a constant and predictable environment. Economic cycles go up and down, while the business landscape is mutating constantly with new regulations, technologies, competitors, and consumer behaviours emerging when we least expect it.

In this dynamic context, it's essential to have a clear roadmap for your video games shop. Otherwise, you are navigating in the dark which is dangerous given that - as a business owner - your capital is at risk.

That's why crafting a well-thought-out business plan is crucial to ensure the long-term success and sustainability of your venture.

To create an effective business plan, you'll need to take a step-by-step approach. First, you'll have to assess your current position (if you're already in business), and then identify where you'd like your video games shop to be in the next three to five years.

Once you have a clear destination for your video games shop, you'll focus on three key areas:

• Resources: you'll determine the human, equipment, and capital resources needed to reach your goals successfully.
• Speed: you'll establish the optimal pace at which your business needs to grow if it is to meet its objectives within the desired timeframe.
• Risks: you'll identify and address potential risks you might encounter along the way.

By going through this process regularly, you'll be able to make informed decisions about resource allocation, paving the way for the long-term success of your business.

To anticipate future cash flows

Regularly comparing your actual financial performance to the projections in the financial forecast of your video games shop's business plan gives you the ability to monitor your business's financial health and make necessary adjustments as needed.

This practice allows you to detect potential financial issues, such as unexpected cash shortfalls before they escalate into major problems. Giving you time to find additional financing or put in place corrective measures.

Additionally, it helps you identify growth opportunities, like excess cash flow that could be allocated to launch new products and services or expand into new markets.

Staying on track with these regular comparisons enables you to make well-informed decisions about the amount of financing your business might require, or the excess cash flow you can expect to generate from your main business activities.

To secure financing

Crafting a comprehensive business plan for your video games shop, whether you're starting up or already established, is paramount when you're seeking financing from banks or investors.

Given how fragile small businesses are, financiers will want to ensure that you have a clear roadmap in place as well as command and control of your future cash flows before entertaining the idea of funding you.

For banks, the information in your business plan will be used to assess your borrowing capacity - which is defined as the maximum amount of debt your business can afford alongside your ability to repay the loan. This evaluation helps them decide whether to extend credit to your business and under what terms (interest rate, duration, repayment options, collateral, etc.).

Similarly, investors will thoroughly review your plan to determine if their investment can yield an attractive return. They'll be looking for evidence that your video games shop has the potential for healthy growth, profitability, and consistent cash flow generation over time.

Now that you understand the importance of creating a business plan for your video games shop, let's delve into the necessary information needed to craft an effective plan.

Need a convincing business plan?

The Business Plan Shop makes it easy to create a financial forecast to assess the potential profitability of your projects, and write a business plan that’ll wow investors.

Writing a video games shop business plan requires research so that you can project sales, investments and cost accurately in your financial forecast.

In this section, we cover three key pieces of information you should gather before drafting your business plan!

Carrying out market research for a video games shop

Carrying out market research before writing a business plan for a video games shop is essential to ensure that the financial projections are accurate and realistic.

Market research helps you gain insight into your target customer base, competitors, pricing strategies and other key factors which can have an impact on the commercial success of your business.

In particular, it is useful in forecasting revenue as it provides valuable data regarding potential customers’ spending habits and preferences.

You may find that customers are increasingly looking for games with high-definition graphics, as console technology improves. Similarly, you might uncover that customers are interested in games that offer an immersive, interactive experience, which could indicate a surge in virtual reality games.

This information can then be used to create more accurate financial projections which will help investors make informed decisions about investing in your video games shop.

Developing the marketing plan for a video games shop

Before delving into your video games shop business plan, it's imperative to budget for sales and marketing expenses.

To achieve this, a comprehensive sales and marketing plan is essential. This plan should provide an accurate projection of the necessary actions to acquire and retain customers.

Additionally, it will outline the required workforce to carry out these initiatives and the corresponding budget for promotions, advertising, and other marketing endeavours.

By budgeting accordingly, you can ensure that the right resources are allocated to these vital activities, aligning them with the sales and growth objectives outlined in your business plan.

The staffing and equipment needs of a video games shop

Whether you are at the beginning stages of your video games shop or expanding its horizons, having a clear plan for recruitment and capital expenditures (investment in equipment and real estate) is vital to ensure your business's success.

To achieve this, both the recruitment and investment plans must align coherently with the projected timing and level of growth in your forecast. It is essential to secure appropriate funding for these plans.

A video games shop might incur staffing costs such as salaries for employees, as well as costs for equipment like computers and gaming consoles. They might also need to pay for internet access, furniture, and other supplies. Additionally, they might need to cover costs for marketing and advertising to reach potential customers.

To create a financial forecast that accurately represents your business's outlook, remember to factor in other day-to-day operating expenses.

Now that you have all the necessary information, it's time to dive in and start creating your business plan and developing the financial forecast for your video games shop.

What goes into your video games shop's financial forecast?

The objective of the financial forecast of your video games shop's business plan is to show the growth, profitability, funding requirements, and cash generation potential of your business over the next 3 to 5 years.

The four key outputs of a financial forecast for a video games shop are:

• The profit and loss (P&L) statement ,
• The projected balance sheet ,
• The cash flow forecast ,
• And the sources and uses table .

Let's look at each of these in a bit more detail.

The projected P&L statement

The projected P&L statement for a video games shop shows how much revenue and profits your business is expected to generate in the future.

Ideally, your video games shop's P&L statement should show:

• Healthy growth - above inflation level
• Improving or stable profit margins
• Positive net profit

Expectations will vary based on the stage of your business. A startup will be expected to grow faster than an established video games shop. And similarly, an established company should showcase a higher level of profitability than a new venture.

The projected balance sheet of your video games shop

The balance sheet for a video games shop is a financial document that provides a snapshot of your business’s financial health at a given point in time.

It shows three main components: assets, liabilities and equity:

• Assets: are resources owned by the business, such as cash, equipment, and accounts receivable (money owed by clients).
• Liabilities: are debts owed to creditors and other entities, such as accounts payable (money owed to suppliers) and loans.
• Equity: includes the sums invested by the shareholders or business owners and the cumulative profits and losses of the business to date (called retained earnings). It is a proxy for the value of the owner's stake in the business.

Examining the balance sheet is important for lenders, investors, or other stakeholders who are interested in assessing your video games shop's liquidity and solvency:

• Liquidity: assesses whether or not your business has sufficient cash and short-term assets to honour its liabilities due over the next 12 months. It is a short-term focus.
• Solvency: assesses whether or not your business has the capacity to repay its debt over the medium-term.

Looking at the balance sheet can also provide insights into your video games shop's investment and financing policies.

In particular, stakeholders can compare the value of equity to the value of the outstanding financial debt to assess how the business is funded and what level of financial risk has been taken by the owners (financial debt is riskier because it has to be repaid, while equity doesn't need to be repaid).

The projected cash flow statement

A cash flow forecast for a video games shop shows how much cash the business is projected to generate or consume.

The cash flow statement is divided into 3 main areas:

• The operating cash flow shows how much cash is generated or consumed by the operations (running the business)
• The investing cash flow shows how much cash is being invested in capital expenditure (equipment, real estate, etc.)
• The financing cash flow shows how much cash is raised or distributed to investors and lenders

Looking at the cash flow forecast helps you to ensure that your business has enough cash to keep running, and can help you anticipate potential cash shortfalls.

It is also a best practice to include a monthly cash flow statement in the appendices of your video games shop business plan so that the readers can view the impact of seasonality on your business cash position and generation.

The initial financing plan

The initial financing plan - also called a sources and uses table - is an important tool when starting a video games shop.

It shows where the money needed to set up the business will come from (sources) and how it will be allocated (uses).

Having this table helps understand what costs are involved in setting up the video games shop, how the risks are distributed between the shareholders and the lenders, and what will be the starting cash position (which needs to be sufficient to sustain operations until the business breaks even).

Now that the financial forecast of a video games shop business plan is understood, let's focus on what goes into the written part of the plan.

Need inspiration for your business plan?

The Business Plan Shop has dozens of business plan templates that you can use to get a clear idea of what a complete business plan looks like.

The written part of a video games shop business plan

The written part of a video games shop business plan plays a key role: it lays out the plan of action you intend to execute to seize the commercial opportunity you've identified on the market and provides the context needed for the reader to decide if they believe your plan to be achievable and your financial forecast to be realistic.

The written part of a video games shop business plan is composed of 7 main sections:

• The executive summary
• The presentation of the company
• The products and services
• The market analysis
• The strategy
• The operations
• The financial plan

Let's go through the content of each section in more detail!

1. The executive summary

The first section of your video games shop's business plan is the executive summary which provides, as its name suggests, an enticing summary of your plan which should hook the reader and make them want to know more about your business.

When writing the executive summary, it is important to provide an overview of the business, the market, the key financials, and what you are asking from the reader.

Start with a brief introduction of the business, its name, concept, location, how long it has been in operation, and what makes it unique. Mention any services or products you plan to offer and who you sell to.

Then you should follow with an overview of the addressable market for your video games shop, current trends, and potential growth opportunities.

You should then include a summary of your key financial figures such as projected revenues, profits, and cash flows.

Finally, you should detail any funding requirements in the ask section.

2. The presentation of the company

As you build your video games shop business plan, the second section deserves attention as it delves into the structure and ownership, location, and management team of your company.

In the structure and ownership part, you'll provide valuable insights into the legal structure of the business, the identities of the owners, and their respective investments and ownership stakes. This level of transparency is vital, particularly if you're seeking financing, as it clarifies which legal entity will receive the funds and who holds the reins of the business.

Moving to the location part, you'll offer a comprehensive view of the company's premises and articulate why this specific location is strategic for the business, emphasizing factors like catchment area, accessibility, and nearby amenities.

When describing the location of your video games shop, you may focus on the potential for growth and success. You could talk about the area's population size and its proximity to larger cities, which could make it easier to draw in customers. You might also mention the demographics of the area and its potential for attracting video game enthusiasts, such as its access to transportation and the presence of other businesses that could increase foot traffic. Ultimately, the goal is to demonstrate the potential for a successful and profitable video games shop in the area.

Lastly, you should introduce your esteemed management team. Provide a thorough explanation of each member's role, background, and extensive experience.

It's equally important to highlight any past successes the management team has achieved and underscore the duration they've been working together. This information will instil trust in potential lenders or investors, showcasing the strength and expertise of your leadership team and their ability to deliver the business plan.

3. The products and services section

The products and services section of your business plan should include a detailed description of what your company offers, who are the target customers, and what distribution channels are part of your go-to-market. 

For example, your video games shop might offer customers the latest video game consoles and games, pre-owned games and consoles, and accessories such as headsets, controllers and charging docks. All of these products provide customers with the opportunity to choose and purchase the best gaming options for their needs, allowing them to get the most out of their gaming experience. Additionally, your shop could offer repair services, allowing customers to get their damaged devices fixed and back in tip-top shape.

4. The market analysis

When outlining your market analysis in the video games shop business plan, it's essential to include comprehensive details about customers' demographics and segmentation, target market, competition, barriers to entry, and relevant regulations.

The primary aim of this section is to give the reader an understanding of the market size and appeal while demonstrating your expertise in the industry.

To begin, delve into the demographics and segmentation subsection, providing an overview of the addressable market for your video games shop, key marketplace trends, and introducing various customer segments and their preferences in terms of purchasing habits and budgets.

Next, shift your focus to the target market subsection, where you can zoom in on the specific customer segments your video games shop targets. Explain how your products and services are tailored to meet the unique needs of these customers.

For example, your target market might include young adults aged 18-24. This demographic typically has disposable income and enjoys playing video games. As such, they are likely to be interested in the latest gaming releases, hardware, and gaming accessories.

In the competition subsection, introduce your main competitors and explain what sets your video games shop apart from them.

Finally, round off your market analysis by providing an overview of the main regulations that apply to your video games shop.

5. The strategy section

When you write the strategy section of your video games shop business plan, remember to cover key elements such as your competitive edge, pricing strategy, sales & marketing plan, milestones, and risks and mitigants.

In the competitive edge subsection, elaborate on what makes your company stand out from competitors. This becomes especially important if you're a startup, aiming to carve a place for yourself amidst established players in the marketplace.

The pricing strategy subsection should demonstrate how you plan to maintain profitability while offering competitive prices to attract customers.

Outline your sales & marketing plan, detailing how you'll reach out to new customers and retain existing ones through loyalty programs or special offers.

For the milestones subsection, outline your company's achievements to date and your main objectives for the future, complete with specific dates to set clear expectations for progress.

Lastly, the risks and mitigants subsection should address the main risks that could affect your plan's execution. Explain the measures you've put in place to minimize these risks, assuring potential investors or lenders.

Your video games shop may face the risk of theft. You could experience a break-in and have your inventory stolen, or shoplifting from inside the store. Additionally, your shop might face the risk of a cyber attack. Hackers could gain access to your website or online store, which could lead to the theft of customer data and financial information.

6. The operations section

The operations of your video games shop must be presented in detail in your business plan.

The first thing you should cover in this section is your staffing team, the main roles, and the overall recruitment plan to support the growth expected in your business plan. You should also outline the qualifications and experience necessary to fulfil each role, and how you intend to recruit (using job boards, referrals, or headhunters).

You should then state the operating hours of your video games shop - so that the reader can check the adequacy of your staffing levels - and any plans for varying opening times during peak season. Additionally, the plan should include details on how you will handle customer queries outside of normal operating hours.

The next part of this section should focus on the key assets and IP required to operate your business. If you depend on any licenses or trademarks, physical structures (equipment or property) or lease agreements, these should all go in there.

You may have key assets such as physical video game discs and consoles. These could be valuable items to the shop, and likely have been acquired at cost and can be sold on for a profit. Additionally, the shop might have digital intellectual property such as access to game codes or downloadable content that customers could purchase to enhance their gaming experience. These could bring in additional revenue and provide an extra service to customers.

Finally, you should include a list of suppliers that you plan to work with and a breakdown of their services and main commercial terms (price, payment terms, contract duration, etc.). Investors are always keen to know if there is a particular reason why you have chosen to work with a specific supplier (higher-quality products or past relationships for example).

7. The presentation of the financial plan

The financial plan section is where we will include the financial forecast we discussed earlier in this guide.

Now that you have a clear idea of what goes into a video games shop business plan, let's look at some of the tools you can use to create yours efficiently.

What tool should I use to write my video games shop's business plan?

There are two main ways of creating your video games shop business plan:

• Using specialized business planning software,
• Hiring a business plan writer.

Using an online business plan software for your video games shop's business plan

Using online business planning software is the most efficient and modern way to write a video games shop business plan.

There are several advantages to using specialized software:

• You can easily create your financial forecast by letting the software take care of the financial calculations for you without errors
• You are guided through the writing process by detailed instructions and examples for each part of the plan
• You can access a library of dozens of complete business plan samples and templates for inspiration
• You get a professional business plan, formatted and ready to be sent to your bank or investors
• You can easily track your actual financial performance against your financial forecast
• You can create scenarios to stress test your forecast's main assumptions
• You can easily update your forecast as time goes by to maintain visibility on future cash flows
• You have a friendly support team on standby to assist you when you are stuck

If you're interested in using this type of solution, you can try The Business Plan Shop for free by signing up here .

Need a solid financial forecast?

The Business Plan Shop does the maths for you. Simply enter your revenues, costs and investments. Click save and our online tool builds a three-way forecast for you instantly.

Hiring a business plan writer to write your video games shop's business plan

Outsourcing your video games shop business plan to a business plan writer can also be a viable option.

Business plan writers are skilled in creating error-free business plans and accurate financial forecasts. Moreover, hiring a consultant can save you valuable time, allowing you to focus on day-to-day business operations.

However, it's essential to be aware that hiring business plan writers will be expensive, as you're not only paying for their time but also the software they use and their profit margin.

Based on experience, you should budget at least £1.5k ($2.0k) excluding tax for a comprehensive business plan, and more if you require changes after initial discussions with lenders or investors.

Also, exercise caution when seeking investment. Investors prefer their funds to be directed towards business growth rather than spent on consulting fees. Therefore, the amount you spend on business plan writing services and other consulting services should be insignificant compared to the amount raised.

Keep in mind that one drawback is that you usually don't own the business plan itself; you only receive the output, while the actual document is saved in the consultant's business planning software. This can make it challenging to update the document without retaining the consultant's services.

For these reasons, carefully consider outsourcing your video games shop business plan to a business plan writer, weighing the advantages and disadvantages of seeking outside assistance.

Why not create your video games shop's business plan using Word or Excel?

Using Microsoft Excel and Word (or their Google, Apple, or open-source equivalents) to write a video games shop business plan is a terrible idea.

For starters, creating an accurate and error-free financial forecast on Excel (or any spreadsheet) is very technical and requires both a strong grasp of accounting principles and solid skills in financial modelling.

As a result, it is unlikely anyone will trust your numbers unless - like us at The Business Plan Shop - you hold a degree in finance and accounting and have significant financial modelling experience in your past.

The second reason is that it is inefficient. Building forecasts on spreadsheets was the only option in the 1990s and early 2000s, nowadays technology has advanced and software can do it much faster and much more accurately.

And with the rise of AI, software is also becoming smarter at helping us detect mistakes in our forecasts and helping us analyse the numbers to make better decisions.

Also, using software makes it easy to compare actuals vs. forecasts and maintain our forecasts up to date to maintain visibility on future cash flows - as we discussed earlier in this guide - whereas this is a pain to do with a spreadsheet.

That's for the forecast, but what about the written part of my video games shop business plan?

This part is less error-prone, but here also software brings tremendous gains in productivity:

• Word processors don't include instructions and examples for each part of your business plan
• Word processors don't update your numbers automatically when they change in your forecast
• Word processors don't handle the formatting for you

Overall, while Word or Excel may be viable options for creating a video games shop business plan for some entrepreneurs, it is by far not the best or most efficient solution.

• Using business plan software is a modern and cost-effective way of writing and maintaining business plans.
• A business plan is not a one-shot exercise as maintaining it current is the only way to keep visibility on your future cash flows.
• A business plan has 2 main parts: a financial forecast outlining the funding requirements of your video games shop and the expected growth, profits and cash flows for the next 3 to 5 years; and a written part which gives the reader the information needed to decide if they believe the forecast is achievable.

We hope that this in-depth guide met your expectations and that you now have a clear understanding of how to write your video games shop business plan. Do not hesitate to contact our friendly team if you have questions additional questions we haven't addressed here.

Also on The Business Plan Shop

• How to write a business plan to secure a bank loan?
• Key steps to write a business plan?
• Top mistakes to avoid in your business plan

Do you know entrepreneurs interested in starting or growing a video games shop? Share this article with them!

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

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

By alex ryzhkov, resources on video game.

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

Video games have become a multibillion-dollar industry, with the popularity of pay-to-play and buy-to-play models skyrocketing in the US. The ease of access and the ability for developers to generate consistent revenue streams make this business model a lucrative option for those looking to enter the industry. In this blog post, we will walk you through nine essential steps to help you write a business plan for your video game venture, ensuring its success in this thriving market.

Before diving into the nitty-gritty of business planning, let's take a moment to appreciate the rapid growth of the video game industry. According to recent statistics, the global video game market is valued at $159.3 billion in 2020, with a projected growth rate of 9.3% annually. This staggering growth indicates a vast potential for success in this industry, making it an enticing opportunity for aspiring game developers.

To create an effective business plan for your video game, you need to start by identifying your target market and conducting thorough market research. Understanding your audience's preferences, needs, and demands will allow you to tailor your game to their specific interests, giving you a competitive edge in the market.

It's crucial to define your unique selling proposition and competitive advantage to differentiate your game from the sea of existing titles. Analyzing potential competitors will also provide valuable insights into their strategies and help you determine how you can stand out in the crowded gaming landscape.

With a clear vision, mission, and objectives in mind, you can establish a strong foundation for your business. Conducting a feasibility study and assessing the financial viability of your venture will ensure that your game has a solid chance of success.

In addition to determining the required startup costs and securing necessary funding, developing a detailed marketing and sales strategy will help you effectively promote and sell your game. Crafting a comprehensive business plan outline will provide a roadmap for your venture, outlining key milestones, strategies, and financial forecasts.

Lastly, gathering necessary industry insights and staying updated on the latest trends will give you a competitive advantage, allowing you to adapt your business plan to the ever-evolving gaming landscape.

With these nine steps as your checklist, you are well on your way to creating a comprehensive business plan for your video game. By targeting the right market, establishing a unique selling proposition, and staying abreast of industry trends, you can navigate the exciting realm of video game development with confidence.

Identify Target Market And Conduct Market Research

Identifying and understanding your target market is crucial when developing a business plan for a video game. It helps you tailor your product to the right audience, ensuring that your game is appealing and meets their needs. To identify your target market, you must conduct thorough market research to gather valuable insights about the gaming industry.

Start by defining the demographics of your target audience, including age, gender, location, and interests. This information will help you understand who your game is aimed at and how to effectively market it to them. Additionally, consider their gaming preferences and behaviors to ensure that your game aligns with their interests and playing habits.

Market research goes beyond understanding your target audience. It also involves analyzing the current gaming market landscape and identifying potential trends and opportunities. Look at the current market size, growth potential, and any emerging niches or gaps that your game can fill. This will help you position your game effectively, ensuring its competitiveness in the market.

Tips for conducting market research:

• Utilize online surveys, focus groups, and interviews to gather data directly from potential players.
• Study market reports, industry publications, and gaming forums to stay updated on industry trends and players' preferences.
• Participate in gaming conventions and events to network with industry experts and potential customers.
• Monitor social media platforms and online communities to gather insights and feedback from gamers.
• Stay updated on competitor activities and analyze their target audience to identify gaps and opportunities.

By identifying your target market and conducting thorough market research, you can ensure that your video game business plan is well-informed and targeted. This will increase the chances of your game's success in the competitive gaming industry.

Define Your Unique Selling Proposition and Competitive Advantage

Before diving into creating a business plan for your video game, it's crucial to define your unique selling proposition (USP) and competitive advantage. Your USP is what sets your game apart from others in the market, and your competitive advantage is what gives you an edge over your competitors.

To define your USP and competitive advantage, consider the following:

• Research your target market: Understanding the needs, preferences, and expectations of your target audience is essential in determining your USP. Conduct market research to identify gaps in the market and uncover what your potential customers are looking for in a video game.
• Analyze your competitors: Study your competitors to identify their strengths and weaknesses. This analysis will help you identify opportunities to differentiate your game and provide a unique value proposition to your target audience.
• Identify your game's unique features: Take a closer look at the features, gameplay mechanics, graphics, storytelling, or any other elements that make your game stand out. Emphasize these unique aspects when defining your USP.
• Showcase your game's benefits: Clearly communicate the benefits that players will experience by choosing your game over others. Whether it's immersive gameplay, captivating storytelling, or innovative mechanics, highlight how these benefits enhance the gaming experience.
• Fulfill a specific need: Identify a need or problem that your game addresses. Whether it's providing a new genre or catering to a niche audience, focus on how your game satisfies this specific need in the market.
• Always keep your target audience in mind when defining your USP. Understand what they are looking for and tailor your game's unique features and benefits accordingly.
• Stay up-to-date with the latest trends and emerging technologies in the gaming industry. Incorporating these trends into your game can give you a competitive edge.
• Regularly seek feedback from potential players or beta testers to understand their preferences and improve your game's unique selling proposition.
• Continuously analyze and monitor your competitors' strategies to stay ahead of the game and adjust your USP if needed.

By defining your unique selling proposition and competitive advantage, you will not only differentiate your game from others but also create a strong foundation for your business plan. This step is crucial for showcasing the value of your game to potential investors, partners, and customers.

Identify And Analyze Potential Competitors

Identifying and analyzing potential competitors is a crucial step in developing a successful business plan for a video game. By understanding the competitive landscape, you can gain valuable insights into existing products, market trends, customer preferences, and potential opportunities for differentiation.

When identifying potential competitors, it is important to look beyond direct competitors who offer similar video game products. Broaden your scope to include indirect competitors who may provide alternative entertainment options or cater to the same target market. This will give you a comprehensive view of the competitive landscape.

Once you have identified your potential competitors, it is essential to analyze their strengths, weaknesses, and market positioning. This analysis will help you identify opportunities to differentiate your video game and develop a competitive advantage.

• Market Positioning: Assess how your potential competitors position themselves in the market. Identify their target audience, pricing strategies, marketing tactics, and unique selling propositions. This will help you understand how you can differentiate your video game and attract customers.
• Product Features: Analyze the features, gameplay mechanics, and overall quality of your competitors' video games. This analysis will help you identify any gaps in the market that you can capitalize on or find ways to enhance your own game to offer a superior experience.
• Customer Reviews and Feedback: Consider researching customer reviews, forums, and social media discussions to gain insights into what customers like or dislike about your potential competitors' video games. This will help you understand customer preferences and identify areas where you can improve upon existing offerings.
• Competitor's Business Strategies: Investigate the business strategies employed by your potential competitors. Look at their distribution channels, partnerships, marketing campaigns, and pricing strategies. Understanding their strategies will allow you to develop effective countermeasures and identify potential collaboration opportunities.
• Competitor's Financial Performance: Research the financial performance of your potential competitors to assess their stability and growth potential. Look for indicators such as revenue growth, profitability, market share, and investments. This information will help you understand the competitive landscape and make informed decisions about your own financial projections.
• Consider conducting SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis for each potential competitor to gain a comprehensive understanding of their position in the market.
• Regularly monitor the competitive landscape to stay updated on new product releases, marketing strategies, and market trends that may impact your video game's success.
• Always strive to differentiate your video game by offering unique features, innovative gameplay mechanics, or exceptional customer service to stand out from the competition.

Establish A Clear Business Vision, Mission, And Objectives

Establishing a clear business vision, mission, and objectives is a crucial step in creating a successful business plan for your video game. These elements will not only guide your decision-making process but also serve as a solid foundation for your company's identity and future growth. Here are some key points to consider when defining your vision, mission, and objectives:

• Define your vision: Your vision should showcase your long-term aspirations and the direction you want your video game business to take. It should outline your ultimate goals and paint a picture of what success looks like for your company.
• Create a mission statement: Your mission statement communicates the purpose and values of your video game business. It should encapsulate the unique value you aim to provide to your target market and how you plan to do so. It should be concise, memorable, and inspiring.
• Establish clear objectives: Objectives are specific, measurable, and time-bound goals that serve as milestones towards achieving your overall mission. These objectives may include revenue targets, user acquisition goals, or product development milestones.
• When defining your vision, think big and aim for long-term impact in the video game industry.
• Ensure your mission statement aligns with your target market's needs and desires.
• Set SMART (Specific, Measurable, Achievable, Relevant, Time-bound) objectives to ensure clarity and focus.
• Regularly review and update your vision, mission, and objectives as your business evolves and market conditions change.

Establishing a clear business vision, mission, and objectives is essential for not only guiding your company's strategic decisions but also for attracting investors, partners, and potential customers. Take the time to define these elements carefully, as they will shape the overall direction and success of your video game business.

Conduct A Feasibility Study And Assess The Financial Viability Of The Venture

Before diving too deep into the development of your video game business, it is crucial to conduct a feasibility study and assess the financial viability of your venture. This step will help you determine whether your business idea is practical and whether it has the potential to generate the desired profits.

• 1. Research the market potential: Begin by researching the current market for video games and assess the demand for your specific genre or concept. Understand who your target audience is and whether they are likely to purchase and engage with your game.
• 2. Evaluate the competition: Analyze the existing competitors in the video game industry and determine how your game will stand out. Assess their strengths and weaknesses to find gaps in the market that you can capitalize on.
• 3. Calculate the costs: Determine the financial resources required to develop, market, and distribute your game. Consider factors such as development tools, licensing fees, personnel costs, marketing expenses, and any other overhead costs that may arise.
• 4. Estimate revenue potential: Forecast the potential revenue that your game can generate. Consider different revenue streams such as game sales, downloadable content, microtransactions, and potential partnerships or collaborations that may contribute to your bottom line.
• 5. Analyze risks and challenges: Identify any potential risks or challenges that may impact the financial viability of your venture. This could include changes in market trends, legal issues, competition, or any other factors that could hinder the success of your game.
• Collaborate with industry experts or consultants who can provide insights and guidance during the feasibility study process.
• Conduct surveys or focus groups to gather feedback from potential customers to validate your market research.
• Consider creating a prototype or demo version of your game to showcase its potential and attract potential partners or investors.
• Regularly revisit and update your feasibility study as market trends and conditions may change over time.

Determine The Required Startup Costs And Secure Necessary Funding

One of the most crucial steps in writing a business plan for a video game is determining the required startup costs and securing the necessary funding. This will require a careful analysis of all the expenses involved in developing and launching your game, as well as a comprehensive plan for obtaining the funding needed.

To begin, identify all the costs associated with developing and launching your video game. This includes expenses such as hiring a development team, purchasing software and hardware, licensing fees, marketing and advertising expenses, and any other operational costs. It is essential to have a clear understanding of the financial requirements of your venture.

Once you have identified the startup costs, the next step is to assess the financial viability of your video game. This involves evaluating the potential revenue streams and estimating the return on investment. It is important to have realistic projections and understand the market demand for your game.

After assessing the financial viability, you will need to determine the funding sources for your video game. There are various options available, including self-funding, seeking investors, applying for grants or loans, or crowdfunding. It is advisable to explore multiple avenues and consider the pros and cons of each option.

• Prepare a detailed budget that includes all the anticipated expenses and revenue projections.
• Consider seeking guidance from industry experts or consultants who specialize in video game funding and investment.
• Research and apply for grants or funding programs specific to the gaming industry.
• Build a compelling pitch deck or business plan to attract potential investors or lenders.
• Consider leveraging crowdfunding platforms to engage with your target audience and raise funds.

Determining the required startup costs and securing necessary funding is a critical step in the business planning process for a video game. It requires careful analysis, research, and strategic thinking to ensure financial viability and long-term success.

Develop A Detailed Marketing And Sales Strategy

A successful video game requires not only a great product but also an effective marketing and sales strategy to reach your target audience and generate sales. Developing a detailed marketing and sales strategy will help you identify the most effective ways to promote and sell your game. Here are some important steps to consider:

• Identify your target audience: Clearly defining your target market is essential for marketing and sales success. Determine the demographic, psychographic, and behavioral characteristics of your ideal customers, and tailor your marketing efforts accordingly.
• Create a compelling value proposition: Clearly communicate the unique features and benefits of your video game to potential customers. Highlight why your game stands out from the competition and why they should choose to purchase and play it.
• Choose the right marketing channels: Consider the most effective channels to reach your target audience. This may include online advertising, social media marketing, influencer partnerships, content marketing, public relations, and more. Focus on channels that are popular among your target audience and align with your marketing goals.
• Develop a marketing budget: Allocate a portion of your overall budget to marketing and sales activities. Determine how much you can afford to spend on advertising, promotions, events, and other marketing initiatives, while ensuring a return on investment.
• Plan promotional campaigns: Create a calendar of planned promotions, events, and sales to drive interest and demand for your game. Consider offering discounts, bundling options, or limited-time offers to incentivize purchases and generate a sense of urgency.
• Built a strong online presence: Establish a professional website and engaging social media channels to showcase your game and interact with your audience. Regularly update your online platforms with relevant content, teasers, trailers, and user testimonials to build excitement and strengthen your brand.
• Forge partnerships and collaborations: Identify potential partners in the gaming industry, such as influencers, gaming communities, or other game developers, to collaborate on promotional activities. These partnerships can help expand your reach and credibility among your target audience.
• Utilize data analytics tools to track and measure the effectiveness of your marketing campaigns. This will help you optimize your strategies and allocate resources more efficiently for future efforts.
• Consider offering a free demo or trial version of your game to allow potential customers to experience it before making a purchase. This can help generate interest and increase the likelihood of conversions.
• Stay updated with the latest trends and developments in the video game industry. Adapt your marketing and sales strategies to align with changing consumer preferences and emerging technologies.

Create A Comprehensive Business Plan Outline

When it comes to starting a video game business, having a well-structured and comprehensive business plan is essential. This document will serve as a roadmap for your venture, outlining your goals, strategies, and financial projections. Here is a step-by-step guide on how to create a comprehensive business plan outline.

1. Executive Summary: Begin your business plan with an executive summary that provides an overview of your company, its mission, and the key highlights of your plan. This section should grab the reader's attention and concisely summarize your entire plan.

2. Company Description: In this section, provide a detailed description of your video game business, including its legal structure, location, and any unique selling points that differentiate you from competitors.

3. Market Analysis: Conduct a thorough analysis of your target market, identifying its size, demographics, and trends. Include information about the demand for video games, the competition landscape, and any potential barriers to entry.

4. Products and Services: Describe the video games and services you will offer, highlighting their unique features, gameplay mechanics, and any additional content or DLC that will be available.

5. Marketing and Sales Strategy: Outline your marketing and sales tactics, including how you will promote your video games, reach your target audience, and generate revenue. Consider incorporating online advertising, social media campaigns, and partnerships with influencers or gaming communities.

6. Organization and Management: Provide an overview of your organizational structure and the key members of your management team. Include their qualifications, roles, and responsibilities to demonstrate their ability to successfully execute your business plan.

7. Financial Projections: Present comprehensive financial projections, including sales forecasts, operational expenses, and profitability analysis. This section should demonstrate the financial viability of your business and its potential for growth.

8. Funding Request: If you require funding to launch or expand your video game business, clearly state your funding needs in this section. Provide details about how much funding you are seeking, how it will be utilized, and any potential sources of financing.

9. Appendix: Include any supporting documents or additional information that adds credibility to your business plan. This may include market research data, legal documents, resumes of key team members, and any other relevant materials.

• Use clear and concise language throughout your business plan to ensure it is easily understandable for potential investors or lenders.
• Include visual elements such as charts, graphs, or mock-ups of your video game to make your plan more engaging and visually appealing.
• Regularly update and revise your business plan as your video game business evolves and new opportunities arise.
• Seek feedback from industry experts or mentors to ensure your business plan is accurate, realistic, and compelling.

Creating a comprehensive business plan outline is an essential step in setting a solid foundation for your video game business. It will help guide your decision-making, attract potential investors, and serve as a reference point for your future endeavors. Invest the time and effort needed to develop a well-structured and compelling plan, and your chances of success will greatly increase.

Gather Necessary Industry Insights And Trends

Gaining a deep understanding of the video game industry is crucial for the success of your business plan. By gathering necessary industry insights and staying updated on the latest trends, you can make informed decisions and stay ahead of the competition. Here are some key steps to gather the necessary industry insights and trends:

• Stay informed through industry publications and websites
• Subscribe to industry newsletters and forums
• Follow influential game developers and industry experts on social media
• Attend industry conferences and events
• Participate in online gaming communities and engage with players
• Regularly read industry publications such as Game Developer Magazine and Gamasutra to stay updated on the latest industry news and trends.
• Join online forums or communities specific to video game development to engage in discussions and gain insights from experienced professionals.
• Participate in game jams or hackathons to connect with other developers and learn about innovative ideas shaping the industry.
• Follow influential game developers and industry leaders on social media platforms like Twitter and LinkedIn to gain insights into their strategies and stay updated on industry conversations.
• Networking at industry conferences and events can provide invaluable opportunities to meet potential partners, investors, and industry veterans who can offer insights and guidance.

By actively gathering industry insights and staying informed about relevant trends, you can ensure that your business plan is up-to-date and aligned with the current market landscape. This knowledge will help you make informed decisions, adapt to changes, and ultimately increase the chances of success for your video game venture.

In conclusion, writing a business plan for a video game requires careful analysis and planning. By following the steps outlined in this checklist, you can ensure that your business plan is comprehensive and aligned with industry trends and insights. Understanding your target market, defining your unique selling proposition, and assessing the financial viability of your venture are crucial steps in building a successful video game business. Additionally, developing a detailed marketing and sales strategy, securing necessary funding, and creating a comprehensive business plan outline provide a solid foundation for your business to thrive. With the growing popularity of the 'pay-to-play' model and the potential for additional revenue streams through DLC and microtransactions, the video game industry offers exciting opportunities for entrepreneurs and developers.

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Beginner’s Guide: Opening Your Retail Game Store

Main Sections In This Post Steps To Starting A Retail Video Game Store Points to Consider Knowledge Is Power Featured Video

This post offers a comprehensive step-by-step guide to kickstart your retail video game store journey, along with abundant examples and samples.

Access valuable resources in our “Knowledge Is Power” section, providing up-to-date and popular information for startup and ongoing operations.

Share and bookmark this post for future reference—it’s a treasure trove of essential insights to ensure your business’s success.

Let’s get started with the steps.

The Steps to Take To Start Your Retail Video Game Store

Below are the steps to starting a retail video game store.

Each step is linked to a specific section, allowing you to jump to your desired section or scroll to follow the steps in order.

• An Overview of What You’re Getting Into
• Retail Video Game Store Overview
• Researching Your Retail Video Game Store
• Looking at Financials
• Choosing A Business Location
• Creating Your Mission Statement
• Creating A Unique Selling Proposition (USP)
• Choose a Retail Video Game Store Name
• Register Your Company
• Create Your Corporate Identity
• Writing a Business Plan
• Banking Considerations
• Getting the Funds for Your Operation
• Software Setup
• Business Insurance Considerations
• Supplier and Service Provider Considerations
• Setting Your Prices
• Physical Setup
• Creating a Website
• Create an External Support Team
• Hiring Employees

1. An Overview of What You’re Getting Into

The Power of Passion in Retail Video Game Store Business

Passion: A Key Ingredient for Success

Working in a field you’re passionate about is a true blessing, and that passion becomes a driving force for your business’s success.

Passion fuels your dedication and commitment, pushing you to find solutions when challenges arise.

The Determining Factor in the Approach

Passion is a determining factor in how you approach problems.

When you’re passionate about your retail video game store, you’re more likely to tackle issues head-on and seek innovative solutions.

On the contrary, a lack of passion may lead to avoidance or seeking an easy way out.

Impact on Success and Decision-Making

The level of passion you hold for your retail video game store significantly impacts your journey to success.

Here’s an important thought experiment:

Imagine you have financial security for life and don’t need to worry about money.

Would you still start and run your retail video game store for free?

If your answer is a resounding yes, it demonstrates your genuine passion for the business.

Alignment with Life Goals

However, if your answer is no, it’s an opportunity for introspection.

Consider what you’d rather do and whether pursuing that path might be a better fit. Passion isn’t just a perk; it’s a vital ingredient for navigating the challenges and uncertainties of entrepreneurship.

The Essence of Business Journey

In conclusion, passion isn’t just a feel-good factor; it’s a cornerstone of success in your retail video game store venture.

When fueled by genuine enthusiasm, your journey becomes more rewarding, and your determination to overcome obstacles becomes unwavering.

For More, See How Passion Affects Your Business . Also, see Considerations Before You Start Your Business to identify key points for a new business owner.

2. Gaining an Overview of Owning a Retail Video Game Store

Next, let’s spend some time on key issues to give you an overview of what to expect from owning and running your business.

a.) A Quick Overview of Owning a Retail Video Game Store

Retail Video Game Store: An Overview

A retail video game store is a business that sells a wide range of video games, consoles, accessories, and related merchandise to customers.

These stores cater to gamers of all ages and offer a diverse selection of products, from the latest releases to classic titles.

Retail video game stores can have physical locations, online platforms, or a combination of both, providing a convenient avenue for gamers to explore and purchase their favorite games.

Day-to-Day Tasks of Running a Retail Video Game Store:

• Inventory Management: Regularly update and maintain inventory, ensuring a diverse range of game titles and accessories are available for customers.
• Customer Service: Provide excellent customer service, assisting customers with inquiries, recommending products, and addressing any concerns they may have.
• Merchandising and Displays: Organize and arrange displays to showcase new releases, special promotions, and featured products to attract customer attention.
• Sales and Transactions: Process sales, handle cash or electronic payments, and provide accurate receipts to customers.
• Marketing and Promotions: Plan and execute marketing campaigns, including social media updates, email newsletters, and promotional events to attract customers and increase sales.
• Product Knowledge: Stay informed about the latest gaming trends, releases, and industry news to offer customers accurate information and recommendations.
• Store Maintenance: Ensure the store is clean, organized, and well-maintained, creating an inviting atmosphere for customers.
• Employee Management (if applicable): Train and supervise employees, assign tasks, manage schedules, and foster a positive work environment.
• Online Presence (if applicable): Maintain and update the store’s website or online platform, including product listings, pricing, and customer interactions.
• Financial Management: Keep track of sales, expenses, and profits, manage cash flow , and ensure financial records are accurate for tax purposes.
• Vendor Relations: Communicate with suppliers, negotiate deals, and manage inventory orders to ensure a consistent supply of products.
• Customer Engagement: Foster customer engagement through events, competitions, and gaming tournaments to create a sense of community around the store.

Running a retail video game store demands a balance between business operations, customer service, and staying current with industry trends.

Successful management involves creating an enjoyable and convenient shopping experience for gamers while adapting to the dynamic landscape of the gaming industry.

b.) Retail Video Game Store Models

Types of Retail Video Game Store Setups and Business Models:

• Traditional Brick-and-Mortar Store: Operating a physical store where customers visit to browse and purchase games and accessories. This model requires a prime location, effective merchandising, and exceptional customer service.
• Specialty Gaming Store: Focusing on a specific niche within the gaming world, such as retro games, collectibles, or esports merchandise. This model caters to enthusiasts seeking unique items.
• Gaming Lounge or Cafe: Combining gaming with a social setting, offering customers the chance to play games while enjoying refreshments. This model creates a community hub and enhances customer engagement.
• Online Retailer: Operating exclusively online, selling games, accessories, and digital downloads. This model requires a user-friendly website, effective e-commerce strategies, and digital marketing.
• Hybrid Model: Blending both physical and online presence, allowing customers to shop online or visit the store. This model offers convenience and caters to a wider customer base.
• Mobile Game Truck: Providing a unique experience by offering gaming setups within a mobile truck or trailer for parties, events, and gatherings. This model requires mobility, event coordination, and marketing.
• Gaming Subscription Service: Offering subscription-based access to a library of games, allowing customers to play a variety of titles for a fixed fee. This model requires licensing agreements and continuous game updates.

Choosing the Right Business Model:

Selecting a suitable business model is crucial from the outset.

Each model comes with its challenges and advantages. Assessing market demand, target audience, and competition helps identify a profitable niche.

Researching and understanding your chosen model’s nuances, cost structure, and potential customer base aids in creating a successful retail video game store.

By making informed decisions upfront, you position yourself for growth and sustainability in the competitive gaming industry.

c.) Pros and Cons of Owning a Retail Video Game Store

Owning and operating a business offers rewards, but challenges exist too. While benefits are enticing, acknowledging potential issues is vital.

Anticipating challenges allows proactive preparation, ensuring you navigate obstacles effectively and make informed decisions for sustainable success.

For more, see Pros and Cons of Starting a Small Business.

d.) Challenges You Could Face When Starting and Operating a Retail Video Game Store

Challenges When Starting a Retail Video Game Store:

Starting a retail video game store comes with its share of challenges:

• Market Saturation: Competing with established stores in a saturated market can be daunting.
• Startup Costs: Acquiring inventory, and equipment, and setting up the store involves substantial initial investment.
• Location Selection: Choosing the right location with adequate foot traffic and visibility is critical.
• Customer Acquisition: Gaining a customer base from scratch requires effective marketing strategies.
• Supplier Relationships: Building relationships with reliable suppliers can be time-consuming.
• Staffing: Hiring and training employees proficiently is crucial for smooth operations.
• Online Competition: Competing with online retailers can impact foot traffic and sales.
• Technology and Trends: Staying updated with gaming trends and tech advancements is necessary.

Challenges in Full Operation:

• Customer Retention: Maintaining a consistent and loyal customer base amid competition is challenging.
• Inventory Management: Ensuring sufficient stock without overstocking or understocking is crucial.
• Changing Preferences: Adapting to evolving gaming trends and customer preferences requires flexibility.
• Employee Management: Managing staff dynamics, scheduling, and maintaining motivation can be demanding.
• Marketing Evolution: Staying relevant in marketing strategies amidst evolving platforms and trends.
• Operational Efficiency: Maintaining a streamlined operation to reduce costs and maximize profit.
• Customer Experience: Consistently providing exceptional customer service can be challenging.
• Seasonal Fluctuations: Navigating slow periods and capitalizing on peak gaming seasons.
• Technological Upkeep: Ensuring technology in-store, online, and for transactions is up-to-date.
• Financial Management: Monitoring cash flow, expenses, and profits while ensuring sustainability.

Navigating these challenges requires adaptability, strategic planning, and a keen understanding of the gaming industry and customer expectations.

e.) Questions You Need to Consider for Your Retail Video Game Store

Preparing for potential challenges is crucial when starting your retail video game store.

Address the following inquiries to anticipate issues and plan accordingly:

• What retail video game store model are you considering?
• Do you possess the required skills to manage and operate the store effectively?
• Will you manage the store single-handedly or hire employees?
• Are you planning to handle operations or hire a manager?
• How will you attract customers to your store?
• What strategies will ensure customer retention ?
• Are you exploring partnerships or investors?
• How will you finance startup costs?
• Have you estimated the time to achieve profitability?
• How will you sustain yourself financially during the early operational phase?
• What products and services will your store offer?
• How do you validate customer demand for your offerings?
• What differentiates you from competitors?

By addressing these questions, you will be better equipped to navigate challenges and make informed decisions for your retail video game store’s successful launch and growth.

3. Research

Inside information retail video game store research.

Thorough Research is Key:

Before any action, conduct in-depth research to initiate your retail video game store. Quality information ensures preparedness, preventing unforeseen challenges.

Seek Expert Insights:

Consult experienced retail video game store owners for valuable insights. Their knowledge offers priceless opportunities to learn from years of hands-on experience.

Approaching the Right People:

Finding suitable individuals involves multiple steps, elaborated in an article I’ve written. This resource suggests ways to approach and gather information without being intrusive.

Comprehensive Understanding:

For detailed insights into the retail video game store industry, read “An Inside Look Into the Business You Want To Start.” This article provides a thorough understanding before proceeding.

See An Inside Look Into the Business You Want To Start for all the details.

Target Audience

Benefits of Understanding Your Target Audience:

Understanding your target market allows tailored product and service adaptation.

Focusing on customers’ interests enhances offerings, instead of providing an extensive but mismatched range.

Target Market Ideas:

• Gamers of all ages and genders
• Video game enthusiasts and collectors
• Parents seeking video game options for their children
• College students interested in gaming
• Tech-savvy individuals and gadget enthusiasts
• Fans of specific gaming genres (e.g., action, role-playing, sports)
• Gift shoppers looking for gaming-related presents
• Local community members seeking entertainment options
• Individuals interested in gaming tournaments and events
• Those seeking unique and nostalgic gaming experiences

Identifying and understanding these potential customer segments helps tailor your retail video game store offerings to cater to their specific preferences and interests.

For more, see How To Understand Your Target Market.

Product & Service Demand

Importance of Determining Product and Service Demand:

Understanding demand before starting is crucial. Quality and pricing are insufficient without demand.

Opening without enough demand could lead to early closure and financial difficulties.

Assessing Market Demand:

• Market Research: Conduct surveys, online polls, or interviews to gauge interest in video games and related products.
• Competitor Analysis: Analyze competitors’ popularity and customer traffic to assess existing demand.
• Location Study: Study foot traffic and customer demographics in potential locations.
• Online Trends: Research online searches, social media discussions, and forums to gauge interest.
• Pre-Launch Teasers: Share teasers about your store’s offerings to gauge potential customer enthusiasm.
• Partner with Local Businesses: Collaborate with nearby businesses to assess potential customer interest.
• Social Media Engagement: Engage with gamers on social media platforms to understand their preferences.

By utilizing these simple strategies, you can effectively assess market demand for your retail video game store and make informed decisions based on potential customer interest.

For more, see the Demand for Your Products and Services.

4. Looking at Financials:

This section provides a comprehensive overview of key considerations related to startup costs, monthly expenses, revenues, and profits for your retail video game store.

Startup Costs:

Accurate estimation of startup costs is vital for a successful launch, ensuring a smooth transition from planning to opening.

Underestimating can lead to financial shortages, delaying your opening, while overestimating might deter potential investors.

Factors influencing costs include operation size, location, employee hiring, equipment purchases, and rental or leasing decisions.

Create a detailed list of requirements and gather price quotes, adjusting as you research unforeseen expenses.

For more detailed information, refer to my article on Estimating Startup Costs.

Sales and Profit:

Sales are influenced by customer service quality, product and service popularity, demand, and targeted marketing efforts.

Profit calculation is simplified with a focus on profit per sale, the number of sales, and overhead expenses.

A single high-profit sale with low volume might not cover costs, similar to high-volume sales with minimal profit per unit.

To gain a comprehensive understanding of your retail video game store’s potential profitability, assess profit per sale, sales volume projection, and total overhead expenses.

For More, See Estimating Profitability and Revenue.

This analysis offers insights into achieving sustainable profitability and maintaining financial health.

Simple Sample: Financial Lists to Consider As a Starting Point

Note: Focus on the list items more than the numbers. The numbers are samples. Your estimates will differ due to how you set up your business, location, expenses, and revenues.

Sample Estimated Startup Costs for a New Retail Video Game Store (USA):

• Lease/Rent for Space: $2,500 – $5,000
• Renovations and Interior Setup: $10,000 – $20,000
• Initial Inventory: $30,000 – $50,000
• Fixtures and Displays: $5,000 – $10,000
• Point-of-Sale System: $2,000 – $5,000
• Marketing and Advertising: $2,000 – $5,000
• Licenses and Permits: $1,000 – $2,000
• Legal and Professional Fees: $1,500 – $3,000
• Insurance: $1,000 – $2,500
• Miscellaneous Expenses: $2,000 – $5,000

Total Estimated Startup Costs: $56,000 – $108,500

Sample Estimated Monthly Expenses for a Retail Video Game Store (USA):

• Rent/Lease: $2,500 – $5,000
• Utilities (Electricity, Water, Internet): $500 – $1,000
• Employee Salaries: $5,000 – $10,000
• Inventory Restocking: $7,000 – $15,000
• Marketing and Advertising: $1,000 – $2,500
• Loan Payments: $800 – $1,500
• Insurance Premiums: $150 – $300
• Maintenance and Repairs: $300 – $500
• Point-of-Sale Software Subscription: $100 – $200
• Miscellaneous Expenses: $500 – $1,000

Total Estimated Monthly Expenses: $17,950 – $36,000

Sample Examples of Profit Per Sale:

• Cost Price: $40
• Selling Price: $60
• Profit per Sale: $20
• Cost Price: $10
• Selling Price: $25
• Profit per Sale: $15
• Cost Price: $250
• Selling Price: $350
• Profit per Sale: $100
• Cost Price: $5
• Selling Price: $15
• Profit per Sale: $10

Please note that these are sample estimates and the actual costs, expenses, and profits can vary based on location, market conditions, and other factors.

Consider revisiting Step 3. Researching your retail video game store , where there is a technique to get inside information, will benefit you in this step.

5. Choosing The Right Business Location

The Importance of Choosing the Right Location

The success or failure of a conventional brick-and-mortar business catering to locals hinges on its location.

Balancing Demand and Competition

Operating where demand is low leads to failure, while intense competition can hinder market share growth.

Consider Affordability

The ideal spot balances demand and competition, considering affordability too.

Weighing Expenses and Exposure

A densely populated area provides exposure, but expenses should not outweigh profits.

Online Business Considerations

Online businesses offer flexibility but demand careful assessment of competition and demand.

Shipping and International Presence

Dependence on search engines requires balanced competition to attract traffic.

Shipping across borders entails expenses and customs delays, affecting customer satisfaction.

Crucial Decision for Success

In conclusion, location significantly impacts business success .

Thoroughly researching and analyzing potential locations is vital to an informed decision for both brick-and-mortar and online models.

For more about business locations, see Choosing The Best Location for Your Business.

6. Create Your Mission Statement

A mission statement clarifies your business’s purpose and aids in staying focused.

It reminds you of the primary value you offer to customers and the community, guiding decisions and actions.

Examples of Mission Statements for a Retail Video Game Store:

• “Our mission is to create a gaming haven where players of all ages and backgrounds can discover, connect, and immerse themselves in a world of interactive entertainment.”
• “At our retail video game store, we’re dedicated to curating a diverse selection of games, consoles, and accessories that cater to every gamer’s passion and preference.”
• “We strive to be more than a store; we’re a gaming destination that fosters a sense of belonging, hosts thrilling tournaments, and brings the gaming community closer together.”
• “Our mission is to provide an unparalleled gaming shopping experience by combining an extensive product range with exceptional customer service and expert advice.”
• “Through our retail video game store, we aim to inspire creativity, skill development, and camaraderie among gamers by offering innovative products and fostering a supportive environment.”

These mission statement examples reflect the underlying purpose of a retail video game store, which can guide its growth and impact on customers and the gaming community.

For more, see How To Create a Mission Statement.

7. Creating A Unique Selling Proposition (USP)

A Unique Selling Proposition (USP) helps you pinpoint and develop a distinct aspect that sets your business apart.

It identifies what makes your retail video game store unique and valuable to customers, aiding in effective branding and marketing strategies.

Examples of USPs for a Retail Video Game Store:

• Exclusive Collector’s Editions:  Offering limited and exclusive collector’s editions of popular video games, creating a sense of rarity and value.
• Gaming Community Events:  Hosting regular gaming tournaments, events, and gatherings, fostering a strong gaming community.
• Personalized Game Recommendations:  Providing personalized game recommendations based on customers’ preferences and gaming history.
• Trade-In Programs:  Offering generous trade-in values for used games, encouraging customers to upgrade their collection.
• 24/7 Online Support:  Providing round-the-clock online support for customers, assisting with game-related queries and issues.
• Game Rental Services:  Introducing game rental services, allowing customers to try games before purchasing.
• Retro Gaming Nostalgia:  Specializing in retro gaming consoles and titles, catering to nostalgic gamers seeking classic experiences.
• Gaming Lounge Experience:  Creating an in-store gaming lounge with high-end equipment for customers to try out new releases.
• Local Indie Game Spotlight:  Showcasing and promoting local indie game developers, fostering a sense of community support.
• Themed Merchandise:  Offering unique merchandise related to popular game franchises, appealing to fans’ interests beyond gaming.

These examples illustrate how a well-defined USP can distinguish your retail video game store, attracting and retaining customers through a unique and valuable offering.

8. Choose a Business Name

Choosing a business name for your retail video game store is a crucial decision.

Opt for a catchy and relevant name that’s easy to pronounce and memorable.

Remember, changing a business name is rare, so take your time in selecting one that aligns with your company’s identity.

Ensure the name has an available matching domain for your online presence and verify its availability to avoid legal conflicts.

Here Is a List of Sample Retail Video Game Store Names:

• GameRealm Emporium
• PixelPlay Arcade
• LevelUp Gaming Hub
• GameScape Oasis
• JoyStick Junction
• MegaGamer Haven
• ConsoleFusion Shop
• EpicQuest Video Games
• InfinitePlay Mart
• PowerUp Playgrounds
• NextGen Gamers Paradise
• PlayZone Universe
• GigaByte GameZone
• PixelPalace Emporium
• GameWave Junction
• GameHaven Collective
• GameVault Emporium
• NeonNexus Arcade
• PlayCrafters Hub
• VirtualVerse Gaming
• PlayHorizon Oasis
• GameGalaxy Emporium
• RetroRevive Arcade
• GameHoarder Mart
• NovaPixel Playgrounds
• PixelPulse Haven
• PlaySphere Collective
• QuantumQuest Video Games
• UltimateRealm Oasis
• FutureFusion GameZone

This list serves as inspiration to help you generate an original and fitting name for your retail video game store.

For more, see the following articles:

• How To Register a Business Name
• Registering a Domain Name For Your Business

9. Register Your Company

Ensuring the legality of your business is paramount. Seeking professional guidance ensures your setup aligns with tax benefits and liability protection.

Consulting experts ensure compliance with regulations and minimize potential legal issues.

Common Types of Registrations for a Retail Video Game Store:

• Business Structure:  Register your business as a sole proprietorship, partnership, LLC, or corporation.
• Trade Name:  If operating under a name other than your legal name, register a trade name (DBA – Doing Business As).
• EIN:  Obtain an Employer Identification Number (EIN) from the IRS for tax purposes.
• Sales Tax Permit:  Register for a sales tax permit to collect sales tax on products sold.

Permits and Licenses for a Retail Video Game Store:

• Business License:  A general business license required in most jurisdictions.
• Gaming Licenses:  If hosting gaming events or tournaments, specific gaming licenses might be necessary.
• Occupational Permit:  For any employees working in the store.
• Signage Permit:  If placing signs, check for local regulations.
• Health Department Permits:  If serving food or beverages.
• Music License:  If playing copyrighted music.
• Online Business Licenses:  For e-commerce operations.
• Fire Department Clearance:  Ensuring safety compliance.

Proactively securing the right registrations, permits, and licenses ensures your retail video game store operates legally and avoids potential penalties.

Registration:

• How to Register Your Business
• How To Register a DBA
• How to Register a Trademark
• How to Get a Business License

Business Structures:

• How to Choose a Business Structure
• Pros & Cons of a Sole Proprietorship
• How To Form an LLC
• How To Register a Business Partnership
• How To Form a Corporation
• How To Choose a Business Registration Service

10. Create Your Corporate Identity

A Corporate ID encompasses design elements that represent your business.

It includes components like your logo, business cards, website, signage, stationary, and promotional items.

Maintaining a consistent and professional design across these elements leaves a lasting impression on both new and existing customers, enhancing your brand’s credibility and recognition.

You can see our page for an overview of your logo , business cards , website , and business sign , or see A Complete Introduction to Corporate Identity Packages.

11. Writing a Business Plan

The Importance of a Business Plan

A business plan is a crucial document used for financing applications and investor pitches. It serves as a guiding roadmap during startup and ongoing operations.

Creating a Comprehensive Plan Takes Effort

Developing a business plan demands time and effort as it envisions your fully operational business.

Expressing details and formulating a solid plan requires thoughtful consideration.

Clarity and Direction for Success

Despite the investment, the completed plan offers clarity for starting up and operating your retail video game store, providing a clear direction for growth.

Exploring Your Options

Multiple avenues exist for crafting your business plan. You can build from scratch, hire professionals, use templates, or utilize specialized software.

Active Involvement Yields Effective Communication

No matter the approach, your participation is vital, especially when engaging professionals.

Effective communication ensures your business’s nature and management strategy are accurately conveyed.

Adapting to Change

Expect your business plan to evolve as you gain experience and adapt to market shifts.

Regularly reviewing and updating your plan aligns it with operations and maximizes success potential.

Business Plan Template for a Retail Video Game Store

1. Executive Summary:

• Overview of your retail video game store’s mission, vision, and key objectives.
• A brief introduction to the store’s uniqueness and target market.
• Financial highlights, including startup costs, funding, and projected profitability.

2. Company Description:

• Detailed explanation of your retail video game store’s concept and offerings.
• Explanation of your value proposition and how you differentiate from competitors.
• Information about your store’s location and physical or online presence.

3. Market Analysis:

• Comprehensive research on the gaming industry, trends, and customer preferences.
• Identification of your target market demographics, including age, gender, interests, and spending habits.
• Analysis of your competitors, their strengths, weaknesses, and market share.

4. Marketing and Sales Strategy:

• Outline your marketing efforts, including online presence, social media, and promotions.
• Strategies to attract and retain customers, including loyalty programs or special events.
• Pricing strategy and plans for reaching your sales goals.

5. Organization and Management:

• A detailed description of your management team’s roles and responsibilities.
• Explanation of your organizational structure, reporting lines, and staff hierarchy.
• Information about any advisors, mentors, or external consultants.

6. Product Line and Services:

• A detailed description of the video game products you will offer, including consoles, games, accessories, and peripherals.
• Explanation of any additional services, such as repairs or gaming events.
• Discussion of how your product offerings align with customer needs and preferences.

7. Funding Request and Financial Projections:

• A clear breakdown of startup costs, including equipment, inventory, marketing, and operational expenses.
• Request for funding, whether from loans, investors, or personal savings.
• Detailed financial projections, including sales forecasts, expenses, and projected profitability over a specific period.

8. Operational Plan:

• Explanation of your retail video game store’s day-to-day operations, from opening hours to customer service procedures.
• Inventory management strategy, including restocking, tracking, and managing suppliers.
• Information on your store layout and design, showcasing how you will create an appealing shopping environment.

9. Appendix:

• Any additional information that supports your business plan, such as market research data, supplier agreements, or legal documents.
• Résumés of key team members, highlighting their relevant skills and experience.
• Sample marketing materials, including logos, banners, and promotional content.

Conclusion: A well-crafted business plan is essential for the success of your retail video game store. Customize this template with your unique ideas and market insights to create a comprehensive plan that guides your business toward growth and profitability.

See How to Write a Business Plan for information on creating your business plan.

12. Banking Considerations

Choosing the Right Bank for Your Retail Video Game Store

Consider selecting a nearby bank with a strong emphasis on supporting small businesses. This choice can offer tailored services and local convenience.

Separating Business and Personal Finances

Open a dedicated business account to segregate transactions.

This separation simplifies expense tracking, ensures accurate reporting, and facilitates smooth tax filing.

Building a Professional Relationship

Develop a professional relationship with your banker.

They can provide valuable advice, and financial services, and streamline application processes for loans or other financial needs.

Accepting Card Payments for Convenience

Obtain a merchant account or use an online service to accept credit and debit card payments from customers.

This practice increases sales and enhances customer convenience, promoting a seamless shopping experience in your retail video game store.

For more, see How to Open a Business Bank Account. You may also want to look at What Is a Merchant Account and How to Get One.

13. Getting the Funds for Your Operation

Securing Funding for Your Retail Video Game Store:

If you require a loan to launch your retail video game store, utilize these tips.

Funding options include traditional lenders, private loans, investor partnerships, and asset sales.

Additionally, explore potential government grants.

Considerations When Meeting a Loan Officer:

• Clear Business Plan:  Present a detailed plan showcasing your retail video game store’s viability.
• Financial Projections:  Highlight projected income, expenses, and repayment capacity.
• Credit History:  Maintain a strong credit score and address any credit concerns.
• Collateral:  Determine assets you can offer as collateral for the loan.
• Repayment Strategy:  Outline how you intend to repay the loan.
• Loan Terms:  Understand interest rates, repayment periods, and associated fees.

Sample List of Documents for a NEW Business Loan:

• Business Plan with Financial Projections
• Personal and Business Credit Reports
• Personal and Business Tax Returns
• Legal Business Structure Documentation
• Collateral Details (if applicable)
• Repayment Plan Outline
• Bank Statements
• Proof of Identification
• Industry Research and Market Analysis
• References and Recommendations

Meeting these considerations and providing the necessary documentation enhance your chances of securing a loan to start your retail video game store.

For more, see the following:

• Getting a Small Business Loan
• SBA Small Business Grants
• Retail Video Game Store Start-up Loans
• Grants For a Retail Video Game Store

14. Software Setup

Choosing the Right Software for Your Retail Video Game Store:

Research software thoroughly as implementing a program from scratch is easier than switching after data is entered elsewhere. Opt for a reputable company with a history to ensure dependable future support.

Demos allow you to evaluate before committing. Reviews and forums offer insights from others’ experiences.

Additionally, research software for expense tracking and tax preparation. Consulting your bookkeeper or accountant aids in making informed decisions.

Types of Software for Retail Video Game Store Management and Operations:

• Point-of-Sale (POS) Software:  Manages sales, inventory, and customer data.
• Inventory Management Software:  Tracks product stock levels, reordering, and restocking.
• E-commerce Platform:  Powers online sales, integrating with the main system.
• Accounting Software:  Manages financial transactions, expenses, and generates reports.
• Customer Relationship Management (CRM) Software:  Tracks customer interactions and preferences.
• Employee Scheduling Software:  Organizes employee shifts and work hours.
• Analytics and Reporting Tools:  Provides insights into sales, trends, and customer behavior.
• Marketing Automation Software:  Assists in email campaigns, promotions, and customer engagement.
• Security Software:  Protects against cybersecurity threats and data breaches.
• Shipping and Logistics Software:  Streamlines shipping and delivery processes.
• Social Media Management Tools:  Oversees social media presence and interactions.
• Website Content Management System (CMS):  Maintains and updates the online store.
• Project Management Software:  Manages tasks, projects, and collaboration.
• Communication Tools:  Facilitates internal and external communication.
• Customer Feedback and Survey Software:  Collects customer feedback and reviews.

Each type of software plays a crucial role in streamlining operations, enhancing customer experience, and ensuring efficient management of your retail video game store.

Check out Google’s latest search results for software packages for a retail video game store.

15. Get The Right Business Insurance

Essential Insurance Coverage for Your Retail Video Game Store

Having the right insurance is crucial as incidents can occur anytime in your retail video game store.

Protect customers, employees, property, and more by considering comprehensive coverage.

Professional Liability and Interruption Insurance

Consider professional liability insurance to safeguard against lawsuits. Interruption insurance becomes vital in case of an unexpected shutdown.

Expert Guidance for Adequate Coverage

Rely on a skilled insurance broker to guide you and ensure adequate coverage.

This precautionary step safeguards your business and minimizes potential risks, allowing you to focus on running your retail video game store with peace of mind.

For more, see What to Know About Business Insurance . You can also browse the latest Google search results for retail video game store insurance .

16. Suppliers, Service Providers and Inventory

Selecting Suppliers and Service Providers for Your Retail Video Game Store:

A solid relationship with suppliers and service providers is essential for your retail video game store’s success. You may require the following items and services:

• Gaming Consoles and Accessories: Establish partnerships with reliable suppliers to ensure a steady supply of consoles, controllers, and accessories.
• Game Titles: Source games from distributors to maintain a diverse game selection for your customers.
• Gaming Peripherals: Partner with suppliers for headsets, keyboards, mice, and other peripherals.
• Web Hosting Services: Select a reputable web hosting provider to ensure your online store operates smoothly.
• Shipping and Delivery Services: Collaborate with delivery companies to ensure timely and reliable shipping.

A dependable supplier can offer competitive pricing, enabling cost savings that benefit both your business and customers.

It’s vital to maintain adequate stock levels, ensuring smooth operations while avoiding excess inventory tying up funds.

Effective Inventory Management:

Focus on offering products your customers desire rather than those they don’t.

Strive for variety and value, balancing inventory levels to meet demand without overstocking or missing sales opportunities.

Financial Considerations:

Having the right amount of inventory is critical. Overstocking leads to tied-up funds, while understocking results in lost sales.

Establishing a strong rapport with suppliers, treating them with respect, and fostering mutually beneficial relationships contribute to a successful retail video game store operation.

For More, See How To Choose a Supplier.

17. Setting Prices

Researching pricing is essential when starting a retail video game store to achieve optimal business outcomes.

Setting the right prices directly impacts your success:

Striking the Balance:

• Avoiding Lost Sales: Pricing too high can deter customers, resulting in lost sales and potential long-term damage to your reputation.
• Profitability Concerns: Extremely low prices might attract customers, but inadequate profit margins can hinder covering expenses, compromising your business sustainability.

Emphasizing Value:

• Finding the Sweet Spot: Balancing your prices with market standards is crucial. Providing value ensures customers see your offerings as worthwhile investments.
• Competitive Advantage: Aligning your prices with the market while highlighting the value you bring sets you apart, attracting customers, and fostering loyalty.

Market Research Advantage:

Thorough pricing research aids in making informed decisions. Analyze competitors, customer expectations, and industry trends.

This information equips you to establish pricing that promotes profitability and attracts customers, creating a solid foundation for your retail video game store’s success.

See the following for more:

• Setting the Price of Your Products and Services
• Search Results for Pricing Strategies for a Retail Video Game Store.

18. Physical Setup

Layout and Setup of an Online Retail Video Game Store:

While online, a well-organized layout is essential. Categorize products logically, ensure easy navigation, and provide a seamless checkout process.

Prioritize user experience and responsive design for various devices.

Signage for Professionalism and Direction:

Even in the digital realm, signage matters. Display a prominent business sign on your website’s homepage.

Utilize clear signs for parking lots, exits, and special areas on your site. Professionally designed signage enhances user experience and conveys credibility.

Efficient Office Setup for Time Management:

Running an online business demands efficient office management.

Your workspace should be organized, stocked with necessary supplies, and equipped with technology to manage orders, communications, and analytics.

Productivity Through Organization:

An organized office increases productivity. Keep essential documents, tools, and devices accessible and systematically arranged.

Streamline tasks to focus on business growth and customer engagement.

Effective Business Management:

Managing an online retail video game store requires attention to detail.

Your office should facilitate effective business operations, ensuring you can handle customer inquiries, process orders, and make informed decisions.

Embrace Digital Efficiency:

While the physical presence may be absent, a well-structured online store, clear signage, and an organized digital workspace are crucial components for a successful and efficient online retail video game store.

See Here are Considerations for The Setup of Your Office for tips and ideas to make your office work for you. Also, have a look at our article About Company Signs.

19. Creating a Website

The Essential Role of a Website for Your Retail Video Game Store

A website is essential for your retail video game store, serving as the primary point of contact and offering vital information about your business.

Ownership and Control

Unlike social media accounts, a website is under your control when you host and register a domain name.

It serves as a potent marketing tool, enabling you to engage customers through blogging.

Establishing Expertise and Trust

Sharing industry insights and tailored tips builds customer trust and positions you as an expert, enhancing credibility and customer loyalty.

A Strong Online Presence

A website is a pivotal asset that allows you to connect, inform, and establish a strong online presence for your retail video game store.

For more, see How to Build a Website for Your Business .

20. Create an External Support Team

External Support Team for Your Retail Video Game Store

An external support team for your retail video game store consists of professionals offering advice and services without being on your payroll .

Diverse Expertise on Your Side

Utilize their expertise for projects, tasks, or on a contract basis. Acknowledging their significance and adding more members enhances your understanding.

Building Trust Over Time

Building such a team takes time, but it’s a valuable ongoing effort. Key members may include an accountant, lawyer, financial advisor, marketing specialist, technical advisor, and consultant.

Strength in Collaboration

A strong support team provides valuable assistance when needed, contributing to your store’s success and growth.

For more, see Building a Team of Professional Advisors for Your Business.

21. Hiring Employees

The following are job positions or outsourced services you may want to consider as your retail video game store grows:

• Store Manager
• Sales Associates
• Customer Service Representatives
• Inventory Manager
• Marketing Coordinator
• Social Media Manager
• Game Console Technician
• Visual Merchandiser
• Accounts and Bookkeeping
• E-commerce Manager (if online sales)
• Event Coordinator
• Cleaning and Maintenance Staff
• Security Personnel
• Graphic Designer (for promotional materials)
• IT Support (for technical issues)
• HR Specialist (for staff management)
• Content Creator (for blog posts, videos, etc.)
• External Accountant or Tax Consultant
• Shipping and Logistics Coordinator (if shipping products)
• Store Expansion Planner (if considering multiple locations)
• Legal Consultant (for business and contract matters)

Remember that job roles can evolve as your business grows and diversifies, so tailor the positions to meet the needs of your expanding retail video game store.

For more, see How and When to Hire a New Employee.

Points To Consider

Next, let’s review essential points before starting your retail video game store.

We will cover sections, including getting customers through the door in the early stages, marketing tips, making your business stand out, looking at established companies, and more.

Hours of Operation:

Hours of operation for a retail video game store can vary, but common considerations include opening around 10 AM to 11 AM and closing around 8 PM to 9 PM on weekdays.

Weekend hours might be extended to accommodate leisure time, opening around 11 AM and closing around 7 PM.

Adjustments for special events or local trends can optimize customer engagement and convenience.

A List of Equipment and Supplies to Consider for a Retail Video Game Store:

• Point-of-Sale (POS) System: Hardware and software for sales, inventory tracking, and customer management.
• Cash Registers: For cash transactions and providing change.
• Computers/Laptops: Used for inventory management, accounting, and various operational tasks.
• Display Shelves/Racks: Showcase products attractively and efficiently.
• Gaming Consoles: Provide demo stations for customers to test games.
• Monitors/TV Screens: Display game trailers, promotions, or live gameplay.
• Security Cameras: Ensure store security and monitor customer activities.
• Barcode Scanners: Simplify inventory management and checkout processes.
• Receipt Printers: Generate customer receipts for purchases.
• Furniture: Display tables, chairs, and seating for customers.
• Storage Cabinets: Safely store products, accessories, and supplies.
• Gaming Accessories: Offer controllers, headsets, and other gaming peripherals.
• POS Receipt Paper: Stock up on paper rolls for receipt printers.
• Lighting: Ensure proper illumination for displays and customer areas.
• Signage and Banners: Attract attention and highlight promotions.
• Cash Handling Supplies: Cash trays, coin holders, and security equipment.
• Decor and Branding Materials: Create a unique store ambiance and reinforce branding.
• Networking Equipment: Routers, switches, and Wi-Fi access points for internet connectivity.
• Software: POS system software, security software, and business management tools.
• Music/Audio System: Background music or audio ambiance for the store.
• Cleaning Supplies: Maintain store cleanliness with cleaning tools and products.
• Security Tags and Detectors: Prevent theft and enhance security with anti-theft measures.
• Gaming Desks/Workstations: Set up workstations for staff or customers.
• Customer Seating: Provide comfortable seating for customers waiting or browsing.
• Promotional Materials: Brochures, flyers , and promotional materials for marketing.
• Storage Solutions: Shelving units, cabinets, and organizers for backroom storage.
• Remote Control Devices: For operating monitors, displays, and audio equipment.
• Employee Uniforms: Outfit staff with branded uniforms or attire.
• Gaming Merchandise: Offer gaming-related merchandise for sale.
• Waste Bins and Recycling Containers: Ensure proper waste disposal and recycling.
• First Aid Kit: Maintain a stocked first aid kit for emergencies.
• Customer Feedback Tools: Comment cards, suggestion boxes, or digital tools.
• Interior Design Elements: Artwork, posters, and interior design features.
• Social Distancing Supplies: Implement measures like barriers and distancing markers.
• Packaging Materials: Bags, boxes, and wrapping materials for customer purchases.

Customize this list based on the size and specific focus of your retail video game store, ensuring you have the necessary equipment to provide excellent service and meet customer needs.

Key Points To Succeeding in a Retail Video Game Store

Succeeding in operating a retail video game store involves several key points:

• Niche Focus: Specialize in a specific gaming niche to differentiate your store and attract targeted customers.
• Building Customer Base: During startup, gaining customers can be challenging. Offer unique incentives and promotions to draw initial interest.
• Relationship Building: Forge strong connections with customers, suppliers, and employees to foster loyalty and cooperation.
• Catering to Customer Needs: Provide products and services that align with customer preferences and desires.
• Customer Feedback: Act on credible customer feedback to enhance operations and address issues effectively.
• Customer Service Excellence: Prioritize exceptional customer service, recognizing that customers drive your business’s success.
• Value-Oriented Approach: Continually provide value through promotions, rewards, and quality products.
• Team Building: Assemble a skilled team in each role, recognizing that a competent staff significantly influences success.
• Effective Staff Management: Treat employees with respect, encouraging a positive work environment and reducing turnover.
• Cash Flow Management: Monitor cash flow closely to ensure financial stability and growth.
• Cost Control: Minimize costs without compromising quality or customer service to maintain profitability.
• Adapting to Change: Embrace industry, technological, and operational changes, adapting strategies to stay competitive.
• Handling Revenue Fluctuations: Prepare for revenue variations and maintain a strong financial foundation.
• Navigating Competition: Address both new and existing competitors through differentiation and innovation.
• Strategic Marketing: Employ effective marketing tactics to raise awareness about your store, attracting a broader audience.

By focusing on these essential aspects, you can navigate challenges, build a loyal customer base, and ensure the success and growth of your retail video game store.

Making Your Retail Video Game Store Stand Out

• Gaming Lounge: Create a comfortable space where customers can try out games before purchasing, fostering a community atmosphere.
• Themed Events: Host gaming tournaments, launch parties, and themed events to engage customers and build excitement.
• Exclusive Merchandise: Offer unique gaming-related merchandise or limited edition collectibles, attracting enthusiasts and collectors.
• Knowledgeable Staff: Employ passionate staff well-versed in gaming to provide expert recommendations and insights.
• Demo Stations: Set up demo stations with popular games, allowing customers to experience gameplay firsthand.
• In-Store Streaming: Showcase live gameplay on screens in-store, connecting with gamers and sparking conversations.
• Virtual Reality Corner: Provide VR experiences for customers to try out immersive gaming technologies.
• Cosplay Workshops: Host cosplay workshops or provide resources for customers to engage in cosplay culture.
• Game Swap Events: Organize game swap events where customers can trade or sell their pre-owned games.
• Customer Reviews: Display customer reviews and recommendations prominently in-store to build trust and credibility.

Add on Ideas for a Retail Video Game Store

• Gaming Accessories: Stock a wide range of gaming accessories such as controllers, headsets, and gaming chairs.
• Gaming Apparel: Offer gaming-themed clothing, from T-shirts and hoodies to hats and accessories.
• Arcade Cabinets: Install arcade cabinets with classic games for customers to enjoy while visiting the store.
• Gaming Cafe: Integrate a small cafe area where customers can grab snacks and drinks while gaming or browsing.
• Game Repair Services: Provide game disc repair and console repair services to address common issues.
• Streaming Gear: Offer streaming equipment for aspiring content creators, such as microphones and capture cards.
• E-Sports Gear: Stock specialized gaming gear optimized for competitive e-sports performance.
• Board Games and Puzzles: Include a selection of popular board games and puzzles with gaming themes.
• Gaming Workshops: Host workshops on game design, programming, or digital art for aspiring game developers.
• Game Subscription Service: Offer a subscription service where customers can rent games for a monthly fee.
• Gaming Tech Showcase: Display and sell the latest gaming hardware and technology, such as gaming PCs and consoles.
• Customization Services: Provide services for customizing gaming consoles, controllers, and accessories.
• Gaming Memorabilia: Offer authentic autographed gaming memorabilia for collectors.
• Gaming Guides and Books: Stock strategy guides, art books, and novels related to popular game franchises.
• E-Sports Viewing Area: Create a dedicated space for customers to watch e-sports tournaments and events.
• Gaming Workstations: Set up gaming workstations for customers to test their hardware and software configurations.
• Gaming-Related Workshops: Host workshops on modding, PC building, or painting miniatures for tabletop games.
• Augmented Reality Experiences: Incorporate AR elements in-store, providing interactive experiences related to gaming.
• Interactive Displays: Install interactive displays that allow customers to learn more about game lore and characters.
• Charity Events: Organize charity events where a portion of sales goes towards supporting gaming-related causes.

By implementing these stand-out ideas and add-ons, you can create a dynamic and appealing retail video game store that caters to a diverse range of gaming enthusiasts and customers.

Marketing Considerations

A successful retail video game store requires attracting the right customers, especially at the start when it’s new and unknown.

As you build a strong reputation, marketing becomes easier with increased experience.

Continuous marketing is essential for ongoing success, and investing in effective techniques boosts revenue.

Simple Methods to Promote Your Retail Video Game Store:

• Social Media: Utilize platforms like Facebook, Instagram, and X to share updates, and promotions, and engage with gamers.
• Local Events: Participate in community events, fairs, or conventions to showcase your store and connect with potential customers.
• Loyalty Programs: Implement loyalty programs to reward repeat customers, encouraging them to spread the word.
• In-Store Promotions: Offer exclusive deals or discounts for in-store purchases, attracting foot traffic.
• Word of Mouth: Encourage satisfied customers to refer friends, amplifying your reach through personal recommendations.
• Online Reviews: Collect positive reviews on platforms like Google or Yelp, boosting credibility and attracting new customers.
• Collaborations: Partner with local businesses for cross-promotions or joint events to expand your reach.
• Flyers/Posters: Distribute flyers or place posters in high-traffic areas to create awareness.
• Email Marketing: Send newsletters with updates, special offers, and gaming insights to your subscriber list.
• Local Advertising: Advertise in local newspapers, magazines, or radio stations to reach a broader audience.

By considering these methods, you can effectively spread awareness about your retail video game store and draw in a growing customer base.

See How To Get Customers Through the Door and our marketing section to provide ideas to help you bring awareness to your business.

Sample Ad Ideas:

Headline: “Level Up Your Gaming Experience!”

Discover the ultimate gaming hub at [Store Name]. Unleash thrilling adventures, unbeatable deals, and top-tier accessories. Visit us today and upgrade your gaming journey!

Headline: “Power Your Play with [Store Name]”

Elevate your gaming prowess with [Store Name]. Uncover a treasure trove of games, consoles, and accessories. Level up your collection – visit us now!

Headline: “Game On at [Store Name]!”

Get your game face on! Explore [Store Name] for the latest releases, competitive gear, and unbeatable gaming excitement. Dive into the world of gaming excellence.

Headline: “Unleash Your Inner Gamer!”

Ready to conquer new realms? Swing by [Store Name] for a gamer’s paradise – games, consoles, and expert advice. Your journey to victory starts here!

Headline: “Unlock Unparalleled Gaming Fun!”

[Store Name] is your gateway to endless gaming thrills. From classics to cutting-edge, find it all here. Join us now and unlock a world of excitement!

(Note: These display ads are designed to be concise and attention-grabbing, fitting the specified word limit.)

To expand your retail video game store’s reach, consider forming partnerships with complementary businesses for mutual benefit:

• Local Cafes/Restaurants: Collaborate to cross-promote and offer discounts, benefitting both gaming and dining customers.
• Gaming Cafes/Lounges: Synergize with places offering gaming experiences, mutually promoting each other’s services.
• Tech Stores: Partner with electronics stores to refer customers seeking gaming equipment and accessories.
• Comic Book Shops: Share clientele interested in pop culture, enabling cross-promotions and referral rewards.
• Event Venues: Collaborate for gaming tournaments, promotions, or joint events, boosting both businesses.
• Gaming Content Creators: Partner with YouTubers or Twitch streamers, promoting products to their audience.
• Schools/Colleges: Engage educational institutions for gaming events or student discounts, building a customer base.
• Entertainment Venues: Partner with cinemas or arcades to offer joint promotions or exclusive packages.
• Virtual Reality Centers: Collaborate for joint promotions, as VR aligns with gaming interests.
• Gaming Influencers: Team up with online influencers who share gaming-related content, expanding your digital presence.

Tailor referral benefits to partners’ needs, like offering referral fees, reciprocal promotions, or exclusive offers.

Such collaborations leverage each other’s customer bases, enhancing visibility and driving business growth.

Focusing on your skill set is vital as it directly impacts your retail video game store’s success.

Evaluating your abilities helps identify gaps.

Having the right skills ensures effective operations, decision-making, and customer interactions. If lacking a crucial skill, learning or hiring compensates.

Essential Skills for a Retail Video Game Store Owner:

• Business Management:  Ability to handle finances, inventory, and overall store operations efficiently.
• Customer Service:  Skill in providing excellent service, addressing customer queries, and building rapport.
• Marketing:  Knowledge of promoting products, reaching the target audience, and creating effective campaigns.
• Industry Knowledge:  Understanding video game trends, titles, and customer preferences.
• Problem-Solving:  Capability to handle challenges, adapt to changes, and find solutions.
• Leadership:  Guiding and motivating staff, fostering teamwork and productivity.
• Communication:  Clear communication with staff, customers, and suppliers.
• Tech Savviness:  Proficiency in using point-of-sale systems and staying updated with technology.
• Negotiation:  Skill in negotiating with suppliers and partners to secure favorable deals.
• Time Management:  Efficiently juggling tasks, prioritizing activities, and managing time.
• Adaptability:  Being open to changes and adapting to evolving market trends .

Having these skills empowers you to excel in the competitive retail video game industry.

Knowledge Is Power if You Use It!

Leverage knowledge for empowerment. Abundant industry information is available.

Valuable links provide startup and operational insights for your business journey.

Trends and Statistics

Industry trends and statistics offer insights crucial for a retail video game store’s success and informed decision-making.

See the latest search results for trends and statistics related to the video game industry.

Retail Video Game Store Associations

Trade associations provide benefits like industry news updates and networking chances, aiding in staying informed and connected within the field.

See the search results related to retail video game store associations and the benefits of Joining the Chamber of Commerce.

The Top Retail Video Game Stores

Examining an established video game store sparks ideas, uncovers industry gaps for a competitive edge, and reveals overlooked offerings from competitors to enhance your business strategy.

See the latest search results for the top retail video game stores.

The Future of  Retail Video Game Stores

Researching the industry’s future empowers potential retail video game store owners with insights to adapt, innovate, and capitalize on emerging trends for sustained success.

See the search results for the future of the retail video game store industry.

Find a Retail Video Game Store For Sale

Buying an existing retail video game store has pros and cons.

Benefits include immediate revenue, skipped startup phase, proven success, existing customer base, and reputation.

Downsides involve higher costs, potential customer loss with changes, and inheriting both positive and negative aspects.

Use the provided link to explore related industries if an exact match isn’t available for sale.

The latest search results for a retail video game store for sale and others in the same category.

Franchise Opportunities Related to a Retail Video Game Store

Owning a retail video game store franchise offers advantages and drawbacks.

Pros include a proven model, reputation, and support from the corporate office. Cons encompass costs, limited autonomy, and ongoing fees. Exploring franchise opportunities may reveal unconsidered aspects.

Use the provided link to search related industries if an exact match is unavailable.

See the latest search results for franchise opportunities related to this industry.

Customer Expectations

Examine search results for customer expectations in video games to understand their perspective and surpass demands.

Discover unforeseen issues, enhancing your ability to comprehensively meet customer needs.

See the search results related to customer expectations for video games.

Expert Tips

Expert tips enhance skills for all levels. Experts gain fresh approaches, and novices acquire valuable knowledge, both benefiting from diverse perspectives to advance their abilities effectively.

See the latest search results for video games to gain tips and insights.

Retail Video Game Store Insights

Explore tips and insights for your video game store. Identify ideas, avoid pitfalls, and enhance industry knowledge to effectively manage and grow your business.

See the latest search results about insights into running a retail video game store.

Video Game Publications

Publications offer vital updates and ideas on video games. Stay current by accessing these valuable sources of information and insights.

See the search results for video game publications.

Video Game Forums

Engage in industry discussions and connect with members via video game forums. Gain insights into customer perspectives for improved understanding and relationships within the community.

See the latest search results related to video game forums.

Boost your retail video game store by taking online or local courses. Enhance skills and knowledge through education for better results in your business.

See the latest courses that could benefit a retail business owner . Also, see our management articles for tips and insights for managing your business.

Retail Video Game Store Blogs

Subscribe to video game blogs for ideas and industry updates. Add multiple, then unsubscribe from inactive or unhelpful ones. Curate a valuable collection of blogs for a steady stream of information.

Look at the latest search results for video game blogs to follow.

Video Game News

Stay informed about gaming news through media coverage. Utilize news as an additional source to keep up with current video game stories.

See the latest results for video game news.

YouTube uploads daily with valuable video game content. Explore insightful videos that provide priceless information about gaming.

YouTube videos related to video games.

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(Indie) Game Marketing Plan – Stand Out in a Crowded Marketplace

• Last Modified: February 21, 2023

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Introduction.

Video games are swiftly changing, and mobile gaming is making the whole market more competitive than ever before. It’s possible that the success or failure of your (indie) game is determined by marketing. It might be difficult to market an independent game, but if you make a marketing plan, you’ll get better results. This tutorial is intended for persons who have no previous marketing expertise and have never developed or marketed a game before. Our goal is to make it as simple as possible for you to be a success in your first foray into the world of gaming marketing. After all, isn’t it a lot more pleasurable to market a video game than, say, a washing machine?

“A fool with a plan can beat a genius with no plan.” – T. Boone Pickens

Table of Contents

Marketing strategy.

The strategy behind marketing an indie game should be part of your overall development plan. Marketing is not just about advertising, it’s also about building relationships with people that believe in you and your game vision. It’s about taking your game (or your studio) to a point A to B. Marketing strategy can be split into three parts :

• Where are we now? (Situation analysis) example: “Our game is a first person horror shooter made by two people.” If you are making this plan to present it to someone outside your organization, you might want to describe in more detail the gameplay, the features and the game as a whole.
• What business should we be in? (Vision and mission). example: “Our vision is to become an indie studio that stands out because of its creativity and innovation.”
• How should we get there? (Roadmap: plans, goals, and objectives) This is mainly the 3rd point that we will focus on in this article. The first two ones can be great if you present your studio to someone outside the industry through a business or marketing plan.

A good marketing strategy will cover “the four Ps” of marketing—product, price, place, and promotion. Product would obviously be your game, the price might be $19.99, the “place” could be “Steam and Nintendo Switch” and the promotion could be “online marketing and advertising”.

You’ve established your basic marketing plan after you’ve answered the 3 questions/answers and the 4P’s. Keep it simple and write it down.

Have you noticed that we’ve basically discussed very concrete subjects up until now? However, in our opinion, it is critical to include originality and creativity to your marketing plan and its execution. This is what allows you to stand out!

Target audience

It’s now time to think of who the end user will be – who is gonna purchase your game, enjoy it and be part of your community? The same way that a cook needs ingredients for cooking his or her dish, you need to think about your target audience when elaborating a marketing plan. Marketing is not just promoting a product; it’s also providing information that will appeal to people interested in buying or playing your game.

What are their interests? What do they look for in video games? How can we reach them?  For whom are we making this game? What is their background? How old are they? Where do they live and what social/cultural factors affect them?  These are all questions that need to be answered before you can start to attract people’s attention. Marketing is a lot about trial and error, but the more information you have—the better your strategy will be!

It might seem obvious that most indie games target “gamers” as their primary audience. However, this is a too broad audience that need to be more detailed. There are also other types of customers who could be interested in buying or playing your game. For example, if your game is about education, you might want to look at schools and professionals as a market.

It’s also important to note that marketing through some channels will be more efficient than others, and this will depend on your target audience.

Knowing how to reach people is the key when it comes to marketing, and this brings us full circle back to our initial point! This means that you should know (or have a good idea) of who your potential customers are before you start looking for ways of getting in touch with them. Reread this last paragraph and try to answer all or more of the questions asked. You will then have what is called in marketing the persona of your customers (or potential customers). A marketing persona is an archetype of your typical customer, describing the demographics (age group), psychographics (interests) and behaviors of your customers. Marketing personas can be used to give you a better understanding of who you’re marketing towards.

Here is an example of a persona for a a deep simulation and management game that follows the history of Homo Sapiens society:

Demographics: Age: 25 Gender: Male Occupation: History student Education: Bachelor’s degree in history Psychographics: Interests: Loves historical simulations, games that require critical thinking and decision-making, and learning about different civilizations and cultures Personality traits: Curious, detail-oriented, analytical, and patient Gaming behavior: Prefers games with a lot of replayability, depth, and complexity; typically spends a lot of time researching a game before making a purchase Behaviors: Plays games for several hours each day, particularly after finishing schoolwork Enjoys exploring different cultures and their histories Is an active member of online forums and communities dedicated to historical simulation and strategy games Enjoys sharing his knowledge and experiences with others in the community Goals: Wants to learn more about human history and culture Seeks games that provide a challenging and immersive experience Enjoys games that allow him to make impactful decisions and see the results of his choices Pain Points: May find the game overwhelming or too complex if it’s not presented in an accessible way Expects a high level of historical accuracy and attention to detail, so any inaccuracies or inconsistencies could be a turn-off May not be willing to spend a lot of money on a game that doesn’t live up to his expectations

This persona can be used as a reference when marketing your game by using keywords, images via social media channels etc. The better you know your target audience (and their interests!) – the better you can reach them.

Understand your competitors

It’s fine to have competitors and learn about them. What’s harmful, on the other hand, is not knowing how to differentiate your game and community from others. You must know what they’ve done in the past, what they are doing now, and whether their marketing efforts were effective for them. This is critical information that is typically freely available, which may assist you answer certain questions later. So make a list of games of the same genre that might be of interest to your target market. Again, websites like VGInsights , Steam Spy, or Steam250 can be incredibly useful. For ten games, you can note the price, the studio that developed it, the platforms available, the approximate number of copies sold, and their presence on which social networks. 

Take the time to study the marketing strategies of at least 3-4 other games. For each, note:

• The game duration
• The game price
• The game reception/rating
• The game available languages
• The game platforms (where it’s distributed)
• The game cumulative sales
• The social medias platform where the game is promoted and the community is gathered

Studying the marketing strategies of competitors can provide valuable insights into what works and what doesn’t in the marketplace, allowing you to learn from your competitors’ successes and mistakes. It can also help to identify gaps and opportunities in the market, as well as to differentiate your game from others and create a unique selling proposition (USP). 

Unique Selling Proposition

So how is your game different from others? Is it the type of art you used for your graphics? Would your story be more exciting than other games in the same genre on the market today? Or would a greater degree of player freedom and customization have an impact on players’ experiences that improves upon what’s already out there. Whatever the reasons, you must identify them and communicate these differences to your audiences.

So what should you do if there is a game that’s similar or matches many of the elements described above? Instead of trying to compete with those games on features or price point, look for other ways where they might be lacking. Maybe your gameplay experience will set it apart from others as players prefer an easier learning curve than say something more complicated like Dwarf Fortress. It could also help by making sure your game runs well even on low-end computers since plenty indie developers optimize their games only after release resulting in some negative comments about how it ran before patching etc.. Or maybe instead of focusing directly on competing against other titles within the same genre, try making a game that stands out in other ways. That could mean adding something innovative or unique to the gameplay, story dynamic, etc..

Player feedback is extremely important and can be useful for your marketing efforts as well – and it’s easy to read them on Steam! So if certain aspects of their games are strong points for them but not working so well with players (maybe too much grinding), consider whether it might work better in yours. If possible, ask current players about how they feel about similar titles on Steam right now – maybe there’s something you haven’t thought of yet? Also encourage positive comments by providing an easy way for people who played your game share what they loved most about it without having to write a lengthy review or tutorial. You could use a simple system like the one on Steam where players can tag their reviews with a certain number of stars and then you’re able to aggregate them easily.

It’s important to remember that being different from others doesn’t mean being better or worse – it just means having something unique about your game experience which is what will help you stand out among so many other indie games. This is not an absolute measure but more as a relative one.

Create your marketing action plan – your tactics – and marketing channels.

To create and engage with a community around your game in development, it’s essential to have a marketing action plan that outlines your tactics and marketing channels. Your marketing actions are the specific tasks you need to do each day, week, month or quarter to get new players interested in and excited about your game. Here are some ideas for tactics and marketing channels you can use to promote your game:

• Posting videos on YouTube and Twitch that showcase your game’s development progress, features, and gameplay mechanics.
• Building a website or landing page for your game to provide more information, screenshots, and videos to your audience.
• Creating a Discord server where your audience can interact with you, share their thoughts on your game, and connect with other fans.
• Being covered in gaming blogs that include link backs to your game’s website.
• Attending events, game jams and conferences to generate interest in your game.
• Using social media networks like Facebook, Twitter, and Twitch to promote your game and engage with your audience.
• Encouraging your audience to participate in game testing and provide feedback to help improve your game before release.
• Creating a press kit with high-quality screenshots, videos, and other assets that journalists and influencers can use to write articles or make videos about your game.
• Creating a newsletter to keep your audience up-to-date with your game’s development progress and news.
• Hosting Q&A sessions with your audience through live streaming or social media platforms to answer their questions and address their concerns.

It’s important to have a calendar or planner to schedule your marketing tactics and keep track of their progress. Your marketing campaigns will be more effective if they have a start date, end date, deliverables, and resources required to execute them. By leveraging these tactics and marketing channels, you can create a strong community around your game and increase your chances of success in the competitive world of indie game development.

Establish a budget 

How much will you spend? When will you spend it? Where will the money come from and what is your spending plan? These questions are important to answer before starting any marketing activity. Marketing can be done in many ways. You need to know what you want and how much it costs to prioritize your options accordingly.

Monitor, measure and improve your marketing tactics

Marketing is not just about how much you spend, but also measuring the results. Evaluating marketing efforts is essential to determining whether they are worthwhile and whether they can be improved.

Monitoring is the aspect of tracking where you analyze how your marketing activities generate traffic and conversions. Tracking includes website analytics, ad campaign tracking (using tools such as Google Analytics), press coverage analysis, your Steam dashboard, etc… Monitoring is the process of gathering raw data, while measurement is your interpretation of this information.

A KPI is a Key Performance Indicator. It is a metric that can help you measure the performance of your marketing activities.

Some examples of marketing KPIs are: number of retweets, conversion rate on Facebook ads, return on ads spend (ROAS), sessions to purchase ratio on Steam, number of people on your Discord server, etc…

You need to establish the right KPIs for your game and track them over time. Only by measuring can you determine whether Marketing activities are generating results or not, and if they should be improved or stopped altogether.

In conclusion, marketing is essential to the success of an indie game. It can turn a good concept into something amazing and has the potential to make or break a game. Keep in mind that your marketing strategy should always be adjusted in the short and long term.

For those who want a more personalized experience, I can offer services to help take your game to the next level. Contact me through the instructions in the footer below.

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

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

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

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

How to Successfully Raise Funds for Your Video Game Studio

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

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

Gaming Lounge Business Plan Template

Written by Dave Lavinsky

Gaming Lounge Business Plan

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

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

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

Download our Ultimate Business Plan Template here >

What Is a 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.

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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.

Other Helpful Business Plan Articles & Templates

Video Game Lounge Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Entertainment Industry » Gaming Industry

Are you about starting a video game lounge? If YES, here is a complete sample video game lounge business plan template & feasibility report you can use for FREE .

Okay, so we have considered all the requirements for starting a video game lounge. We also took it further by analyzing and drafting a sample video game lounge business marketing plan template backed up by actionable guerrilla marketing ideas for video game lounges. So let’s proceed to the business planning section.

If you are passionate about keeping people busy and happy, you should think towards starting your own video game lounge. A video game lounge is one of the easiest businesses to start especially if your aim of starting the business is to take the stress off people and make them happy.

Since the invention of the first video game, tons of interesting video games have been produced and more would still be produced.

You might claim that people prefer playing the games in their houses, and you might be right, but the truth remains that most people cannot afford to keep buying new editions of video games every time they are released; hence the need for video game lounges.

Remember, people visit gaming centres not just for playing games, but to rent latest game cartridges that they do not have or can’t afford. You can also walk up to a gaming centre to exchange your old game box for a newer version at a very minimal fee.

Whether you like it or not, gamers would always come to a point where the games they have no longer look interesting to them, so the need to get a new one. Lastly, it can’t be overemphasized that opening a video game lounge is not an easy task, but nevertheless, you still need to be creative if you intend making money from your business.

One of the ways you can make money from your video game lounge is to ensure that you make your location a complete entertainment spot. Here is a sample video game lounge business plan that can give you the needed guide to write yours.

A Sample Video Game Lounge Business Plan Template

1. industry overview.

A video game lounge or center is a facility where people go to play video games. According to a report published by IBISWorld, the Video Games industry has experienced strong returns on industry products during the latter half of the five-year period to 2018.

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

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

The report shows that over the past five years, the video games industry in the US has grown by 7.2 percent to reach revenue of $44bn in 2018. In the same timeframe, the number of businesses grew by 11.3 percent and the number of employees grew by 5.2 percent.

Statistics has it that in the united states of America alone, there are about 144,152 licensed and registered video game lounges responsible for employing about 230,914 employees and the industry rakes in a whopping sum of $44 billion annually with an annual growth rate projected at 7.2 percent between 2013 and 2018. It is important to state that no establishment has a lion share of the available market in this industry.

Lastly, the need for you to equip your gaming centre can’t possibly be overemphasized because you need to make your business point as attractive as ever.

You would need between 5 to 20 computers, Xbox stations, comfortable chairs, tables, air conditioner, shelve for stocking video games amongst others. You might also want to ask people who are already in the business about the gadgets you might need.

2. Executive Summary

Fast Track® Video Game Lounge, LLC is a licensed and well equipped video game center that will be located in one of the busiest streets in Santa Fe – New Mexico. We have been able to secure a standard facility in a central location in Santa Fe. We are equipped to service the whole of the community as well as visitors and tourists.

Fast Track® Video Game Lounge, LLC is going to become the number one destination for gamers in the whole of Santa Fe – New Mexico.

We are well equipped to operate a licensed video game lounge with 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.

We conducted a thorough market research and feasibility studies and we came to the conclusion that Santa Fe – New Mexico is the right place to start our video game lounge. Our client’s best interest would always come first, and everything we do will be guided by our values and professional ethics.

Fast Track® Video Game Lounge, LLC will be open 24 hours in a day during weekends (Fridays to Sundays) and from 6:00 am to 12 midnight from Mondays to Thursdays in order for us to accommodate people with different time preferences. This is why we have made provision for effective floodlight system and also recruited enough staff to run shift.

Fast Track® Video Game Lounge, LLC will at all times demonstrate her commitment to sustainability, both individually and as a business, by actively participating in our communities and integrating sustainable business practices wherever possible.

We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.

Fast Track® Video Game Lounge, LLC is owned by Olsen Hamilton and his immediate family members. The business will be managed by Olsen Hamilton and his son Jerry Hamilton. Olsen Hamilton has over 15 years’ experience in the industry working for some of the leading video game centers in Santa Fe – New Mexico.

3. Our Products and Services

Fast Track® Video Game Lounge, LLC is in the Video games industry to provide standard video game lounges for residents of Santa Fe – New Mexico which is why we have been able to put up a facility that can help us achieve this goal.

We are optimistic that everyone who makes use of our video game lounge will definitely derive huge value for their money. These are the services and amenities that will be made available to our clients;

• 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
• Sale of Video games and accessories
• Sale of food and beverages

4. Our Mission and Vision Statement

• Our Vision of starting Fast Track® Video Game Lounge, LLC is to build a world – class video game lounge that can compete with leading brands in the industry.
• Our mission for establishing Fast Track® Video Game Lounge, LLC is to contribute our quota in promoting video game activities in Santa Fe – New Mexico and also to make profits from the Industry; we want to become the leading video game lounge in the country.

Our Business Structure

Fast Track® Video Game Lounge, LLC intends to become the leading video game lounge in the whole of Santa Fe – New Mexico and we are fully aware that it will take the right facility, management and organizational structure to achieve our goal.

The kind of the video game lounge we intend building and the business goals we want to achieve is what informed the amount we are ready to pay for the best hands available in the industry as long as they are willing and ready to work with us.

Our business will not be built only for the purpose of giving our customers value for their money, but also we will ensure that we make our video game lounge highly conducive for all our employees. We will provide them with facilities that will help them stay motivated.

In view of that, we have made provisions for the following positions to be occupied by highly qualified and experienced staff;

• Chief Executive Office – CEO
• Accountant/Cashier
• Marketing and Sales Officer
• Video Games Instructor/Assistant (5)
• Customer Care Executive / Front Desk Officer

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
• Creates, communicates, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for fixing prices and signing business deals
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Carries out induction for new team members
• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of video games and other equipment by completing preventive maintenance requirements; calling for repairs.
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Oversees the smooth running of the daily activities in the video game lounge.

Video Game Instructors/Assistant (5)

• Responsible for operating a licensed video game lounge
• Responsible for teaching newbies how to play various video games available in our lounge
• Responsible for selling food, alcoholic and nonalcoholic beverages
• Ensures that the video game machines are properly arranged
• Responsible for recommending the replacement of worn out or damaged video games, pads, consoles and other video game accessories

Marketing and Sales Officer (2)

• Identifies, prioritizes, and reaches out to new clients, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing for the business especially as it relates to expansion
• Documents all customer contact and information
• Represents Fast Track® Video Game Lounge, LLC in strategic meetings
• Helps to increase sales and growth for Fast Track® Video Game Lounge, LLC.

Accountant/Cashier:

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

Client Service Executive

• Welcomes members/clients by greeting them in person or on the telephone; answering or directing inquiries.
• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in the organization’s products and services
• Manages administrative duties assigned by the management in an effective and timely manner
• Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries

Cleaners (3):

• Responsible for cleaning in and around the video game lounge
• Cleanses up after customers
• Clears ashtrays when required.
• Washes glassware and utensils after each use.
• Maintains a clean working area by sweeping, vacuuming, dusting, cleaning of glass doors and windows, etc. if required.
• Ensures that toiletries and supplies don’t run out of stock
• Handles any other duty as assigned by the manager.

6. SWOT Analysis

Fast Track® Video Game Lounge, LLC is in business to provide video game facility for gamers in Santa Fe – New Mexico and at the same time to make profits. We are aware that there are competitions in the industry which is why we took out time to conduct an effective SWOT Analysis before investing our hard earned money into the business.

We know that if we get things right before starting our video game lounge, we will not have to struggle before attracting loyal clients and building our customer base to a level where we can easily breakeven. We hired the services of a HR and Business consultant with bias in business structuring to help us conduct SWOT analysis for our organization and he did a pretty good job for us.

Here is a of the result we got from the SWOT analysis that was conducted on behalf of Fast Track® Video Game Lounge, LLC;

One of the obvious strength that will definitely stand as a plus for Fast Track® Video Game Lounge, LLC is the fact that our facility is centrally located in a densely populated – residential area in Santa Fe – New Mexico; our location is in fact one of our major strengths coupled with the support from stakeholders in the industry.

We equally have a team of highly qualified professionals who will work with our clients and lastly our wide range of video games are amongst the best that anybody living in Santa Fe – New Mexico can get.

We looked into our Business model and we were able to identify two major weakness. One is the fact that we are a new business and the second is the fact that we may not have the financial resources required to match up with existing video games centers and even casinos and gaming centers in New Mexico when it comes to employing experts in the industry and generating the needed hypes that can drive traffic towards our video game lounge.

• Opportunities:

We are centrally located in one of the densely populated areas in Santa Fe – New Mexico and we are open to all the available opportunities that the city has to offer. We will be open 24 hours in a day during weekends (Fridays to Sundays) and from 6:00 am to 12 midnight from Mondays to Thursdays, thus giving us the advantage to leverage on any available opportunity.

Some of the threats that are likely going to confront Fast Track® Video Game Lounge, LLC are unfavorable government policies , demographic/social factors, downturn in the economy which is likely going to affect consumers spending and lastly, the emergence of new competitors within the same location where our video game lounge is located.

7. MARKET ANALYSIS

• Market Trends

If you are conversant with the video games industry, you will realize that it was worst hit by economic slowdown and it has still been unable to reach the pre-recession levels. But with creativity, they are bouncing back gradually.

By tradition, individuals with abundant leisure time, such as children and students, represent the primary demographic for video games. However, as more individuals choose outdoor recreational activities and sports, they are less likely to spend time playing video games.

In 2018, the number of individuals participating in sports is forecast to increase, representing a potential threat to the industry.

Video games commonly feature enhanced content for players with broadband internet connection. These features include multiplayer modes, downloadable content and in-game chat functions, which can be free or provided on a fee or subscription basis.

Consumers are expected to increasingly use these online features. The percentage of services conducted online is expected to increase in 2018, representing a potential opportunity for the industry.

Lastly, it is a common trend that as video game lounges grow, it becomes necessary for them to develop new service offerings or install new facilities that will help them attract more people.

Little wonder some video game lounges now have juice and smoothie bars, retail food, alcoholic and non – alcoholic drinks et al within their facility to encourage people to relax and socialize. In order words, it is very important for video game lounges to continue to improvise if they want to grow their business.

8. Our Target Market

Aside from teenagers and children, the target market for video game lounges cuts across people of different walks of life. The fact that people visit video games centers for various reasons makes marketing the business interesting. These are the category of people that we intend marketing our business to;

• High school students
• Applicants/School Leavers
• Sports Men and Women
• College Students

Our competitive advantage

The Video games industry is indeed a highly competitive industry. Clients will only patronize your video game lounge if they are comfortable with the games you have or if you can provide the enabling environment and facility for them to socialize.

Fast Track® Video Game Lounge, LLC is centrally located in a densely populated residential area in Santa Fe – New Mexico; this is obviously going to give us an edge amongst our competitors. We equally have a team of highly qualified professionals that will work with all our clients and make it easier and comfortable when they patronize our video game lounge.

So also, our video game machines are amongst the best that anybody living in Santa Fe – New Mexico can get; it is easy to use and highly reliable.

Lastly, 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

Fast Track® Video Game Lounge, LLC is established with the aim of maximizing profits in the Video games industry and we are going to go all the way to ensure that we do all it takes to attract clients on a regular basis. Fast Track® Video Game Lounge, LLC will generate income by offering the following services;

• Video games renting services
• Sale of games and accessories

10. Sales Forecast

We are well positioned to take on the available market in Santa Fe – New Mexico and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operation and grow the business and our clientele base.

We have been able to examine the Video games industry – market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below are the sales projection for Fast Track® Video Game Lounge, LLC, it is based on the location of our video game lounge facility and the wide range of video games that we will be offering;

• First Fiscal Year:  $180,000
• Second Fiscal Year:  $350,000
• Third Fiscal Year:  $450,000

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and natural disasters within the period stated above. There won’t be any major competitor (video game lounge) offering same services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

Our marketing strategies will be directed towards achieving specific objectives that support the strategic goals of the organization.

The truth is that all that we do will be geared towards creating new market channels, increasing sales and our market share. We will leverage on improving on our services and facility to ensure that we win new clients and retain old clients as well.

As part of our sales and marketing strategies, we will pay attention to the promotion of our video game lounge so as to attract people to make use of our facility. Our unique selling proposition is that we are well positioned and people can easily access our facility, our payment platforms are highly reliable. Part of the marketing and sales strategies that we will adopt are;

• Open our video game lounge with a big party in other to attract residents who are our first target
• Advertise our video game lounge on national dailies, local TV and radio stations
• Promote our video game lounge online via our official website and all available social media platforms
• Introduce our video game lounge by sending introductory letters alongside our brochure to sports clubs, schools, households and key stakeholders in Santa Fe – New Mexico
• Print out fliers and business cards and strategically drop them in offices, libraries, public facilities and train stations et al.
• Deliver consistent customer experiences to all our customers; making our first impression count positively to those making use of our video game lounge for the first time
• Make use of attractive hand bills to create awareness and also to give direction to our video game lounge
• Adopt direct mailing coupon marketing approach
• Position our signage / flexi banners at strategic places in and around Santa Fe – New Mexico
• Create a loyalty plan that will enable us reward our consistent clients especially those that registered as a family or as a group
• Engage on roadshows within our neighborhood to create awareness for our video game lounge.

11. Publicity and Advertising Strategy

We have been able to work with our branding and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market.

We are set to become the number one choice for in the whole of Santa Fe – New Mexico which is why we have made provisions for effective publicity and advertisement of our video game lounge. Below are the platforms we intend to leverage on to promote and advertise Fast Track® Video Game Lounge, LLC;

• Place adverts on both print (community based newspapers and magazines) and electronic media platforms
• Sponsor relevant community based gaming or sport events and competitions
• Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, YouTube, Google + et al to promote our brand
• Install our billboards in strategic locations all around Santa Fe – New Mexico
• Engage in roadshow from time to time in targeted neighborhoods all around Santa Fe – New Mexico
• Distribute our fliers and handbills in target areas all around Santa Fe – New Mexico
• List Fast Track® Video Game Lounge, LLC on local directories / yellow pages
• Advertise our video game lounges in our official website and employ strategies that will help us pull traffic to the site.
• Ensure that all our staff members wear our branded shirts and all our vehicles are branded with our corporate logo et al.

12. Our Pricing Strategy

Since the bulk of our customers come from the middle class, it is advisable to set the prices for playing our video games on the moderate side. We will not allow the drive to recoup our money fast tempt us to set prices that can scare our customers away.

In view of that, our pricing system is going to be based on what is obtainable in the industry, we don’t intend to charge more (except for premium and customized services) and we don’t intend to charge less than what our competitors are charging their clients in Santa Fe – New Mexico.

Be that as it may, we have put plans in place to offer discount services once in a while and also to reward our loyal customers especially when they refer clients to us or when they register as a family or a group. The prices of our services will be same as what is obtainable in the United States’ video game lounge market.

• Payment Options

The payment policy adopted by Fast Track® Video Game Lounge, LLC 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 Fast Track® Video Game Lounge, LLC will make available to her clients;

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

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

13. Startup Expenditure (Budget)

From our market survey and feasibility studies, we have been able to come up with a detailed budget for establishing a standard video game lounge in Santa Fe – New Mexico and here 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 – $1,500.
• Marketing promotion expenses (8,000 flyers at $0.04 per copy) for the total amount of – $10,000.
• The total cost for hiring Business Consultant – $5,000.
• The amount needed for the purchase of insurance policy covers (general liability, workers’ compensation and property casualty) coverage at a total premium – $15,800.
• The total cost for the purchase of accounting software, CRM software and Payroll Software – $3,000
• The total cost for leasing facility for the video game lounge – $80,000.
• The total cost for facility remodeling – $50,000.
• Other start-up expenses including stationery – $1000
• Phone and utility deposits – $3,500
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
• The cost for Start-up inventory – $15,000
• The cost for acquiring LED TVs, computers, Xbox stations, comfortable chairs, tables, Air Conditions, Shelve for stocking video games and video games accessories amongst others. – $50,000
• The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, snooker board, tables and chairs et al) – $4,000.
• The cost of Launching a Website – $600
• The cost for our grand opening party – $15,000
• Miscellaneous – $5,000

We would need an estimate of $300,000 to successfully launch a medium but standard and well-equipped video game lounge in the United States of America.

Generating Funds/Startup Capital for Fast Track® Video Game Lounge, LLC

Fast Track® Video Game Lounge, LLC will be owned and managed by Mr. Olsen Hamilton and his immediate family members. They are the sole financiers of the business which is why they decided to restrict the sourcing of the startup capital for the business to just three major sources.

These are the areas we intend generating our startup capital;

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

N.B: We have been able to generate about $100,000 (Personal savings $70,000 and soft loan from family members $30,000) and we are at the final stages of obtaining a loan facility of $200,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

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

One of our major goals of starting Fast Track® Video Game Lounge, LLC is to build a business that will survive off its own cash flow without 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 in our video game lounge is to equip our facility with state of the art videogames and to make our facility highly secured.

Fast Track® Video Game Lounge, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

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 ten 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
• Acquiring facility and remodeling the facility to fit into a standard video game lounge: 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 video games and accessories, electronic appliances, office appliances: In progress
• Creating Official Website for the Company: Completed
• Creating Awareness for the business both online and in the neighborhood: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening party/launching party planning: In Progress

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More From Forbes

Why qurate’s qvc and hsn believe the future of tv shopping is on streaming.

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This July 7, 2017, photo shows QVC facility in West Chester, Pa. (AP Photo/Matt Rourke)

The traditional business of TV shopping is at an inflection point as it competes with other retailers for consumers’ discretionary spending and the entertainment industry for their attention. Cracks in the traditional TV shopping business model are beginning to show.

While the nation’s number three shopping channel iMedia Brand ’s ShopHQ is still broadcasting, it is in Chapter 11 bankruptcy proceedings and been delisted from the Nasdaq. QVC, the number one shopping channel and number two HSN, jointly owned by Qurate Retail, have had a rough time too.

In May of last year, Qurate received a Nasdaq delisting notice but got a last-minute reprieve after selling off Zulily . Still, in October, it topped CreditRiskMonitor ’s list of retailers on the verge of bankruptcy along with Farfetch FTCH , Joann and Rite Aid RAD , and we know what happened with them.

CEO David Rawlinson is tasked with righting the Qurate ship. Since joining the company in October 2021, he had scant good news to report in earnings calls.

But that changed in the company’s latest 2023 earnings report . The results of Project Athens’ three-year transformation plan, which was implemented a year after his arrival, are starting to bear fruit.

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Project Athens is a plan to not just make over the company but to transform its entire business model.

Qurate is keeping the best of the highly personal and entertaining TV shopping model perfected over the last 40-odd years by QVC and HSN and adapting it to a 21st-century video-commerce business model that expands beyond cable television and e-commerce to large-screen and small-screen/mobile streaming services, social streaming (e.g. TikTok, Facebook, X), livestream “fast” services (i.e. free ad-supported streaming services) and in-app purchasing.

“I don’t mind people using the term ‘TV shopping,’ but the better description is ‘video shopping’ or v-commerce,” he shared with me after the earnings call.

As more consumers cut the cable cord, streaming is v-commerce’s future. “We have near universal coverage in the streaming universe on Apple TV, Roku, YouTube, Sling, Amazon Fire TV, Google TV and more. We had 23% growth in that universe, making it the fastest growing part of our business, yet it’s still only about 5% of our total minutes viewed. Every day it’s becoming a bigger and bigger part of our business.”

Topline Turnaround

On the topline, Qurate’s revenues continued to slide in 2023, but the hemorrhaging slowed, even turned the corner. After reaching a high of $14.2 billion in 2020 and dropping only 1% in 2021, revenues declined 14% in 2023 and another 5% in 2023, from $11.2 billion to $10.6 billion, excluding Zulily.

But nearly two-thirds of the decline came from electronics, which were soft across the industry. And it saw growth in apparel, fitness, beauty devices, fashion accessories, footwear and fine jewelry where a lab-grown diamond collection priced from $1,300 to $5,000 was introduced on QVC with many pieces selling out immediately.

Because the company gets instant feedback on what’s hot and what’s not, it can quickly adjust presentations to shift the mix to higher-margin, faster-selling items. For example, it generated $5.7 million in sales of 19,000 Ninja Woodfire electric smoker and grill combo for $300 each, and a Barefoot Dreams throw yielded $6 million on Cyber Monday alone.

Qurate also started to add new customers in the third and fourth quarter 2023, after experiencing a steady drop over the past several years. The fourth quarter saw a 21% increase in new customers. QVC/HSN boasts some 8.1 million active customers with a mix of about half steady customers, one-fourth reactivated past customers, and one-fourth new customers.

Building customer loyalty pays off for the company. Existing customers account for roughly 31 items purchased and $1.6K in annual spend and generate 90% of QVC/HSN’s $7 billion in revenues.

QVC’s best customers, roughly 20% of its base who purchase at least 20 times per year, generate some three-fourths of revenues, purchasing on average 76 items in the year. The best customers’ spending increased on average 9% to $3,900.

One pillar of the Athens Project plan was to better differentiate QVC and HSN in the market, which were near identical twin sisters since HSN was acquired at the end of 2017. Rawlinson describes QVC as a “premium luxury retailer,” and its stable of long- time hosts have established a special relationship with their customers as trusted advisors, even friends. The average tenure for its most popular hosts is nearly 30 years.

“Our hosts build quality relationships with our viewers in ways that really surprised me,” Rawlinson related. “I get letters on a daily/weekly basis, often from people going through a hard time who feel a real connection with a host talking about their personal journey. David Venable has been very courageous talking about his weight loss journey. That makes a powerful connection and builds deep relationships of understanding, vulnerability and trust with our viewers.”

HSN, by contrast, is described as “a little more playful, irreverent at times, and moves a little faster.” It’s customer base is a bit younger than QVC, which is more focused on women 50+ with greater discretion to spend, and more ethnically diverse.

There’s also slightly more emphasis on celebrity presenters, like Dolly Parton, Iman, Giuliana Rancic, Jessica Simpson, Kathy Ireland, Christian Sirano and Wolfgang Puck, who just celebrated his 25th year with HSN and has generated $600 million in sales for the company.

Bottom Line Recovery

With things looking up on Qurate’s topline, Rawlinson can take a victory lap from the company’s bottom line performance in 2023. It turned an operating loss of $1.5 billion last year to a $647 million gain. It unlocked $577 million in free cash flow in 2023 versus use of $9 million last year. And it reduced debt by $956 million in 2023.

It also turned the corner on adjusted OIBDA starting in the third quarter that picked up steam in the fourth, rising 73% to $340 million over fourth quarter 2022, including the divestiture of Zulily, and up 46% excluding it.

OIBDA improvements are credited to:

• Gross margin expansion with a shift to higher-quality products with higher average selling prices and profit margins
• Reduction in fulfillment expenses by renegotiating shipping and delivery rates and executing other operational enhancements
• Reducing inventory balance by 22% year-over-year, which opened the door for newer product assortments

Rawlinson and his team have kept the wolf threatening its door last October at bay, but according to James Gellert, executive chair of financial health analytics firm RapidRatings, it still has work to do.

“Qurate improved its financial health in 2023 but needs to work itself out of this multi-year earnings volatility before the market can have confidence in the stock and the company,” he shared.

“Significant swings in profitability are hard for management and employees; this can lead to inconsistent financial health. Through product tweaks, asset sales, and management changes, the company is trying to adjust and innovate in the evolving retail landscape,” Gellert added.

Restoring The Human Connection To Retail

The ancient Chinese philosopher Lao Tzu said, “If you do not change direction, you may end up where you are heading.” Over the last few years, the signs were there about where Qurate was heading, and just in time, Rawlinson stepped in to change direction.

And not being an industry insider has worked to his advantage since it gives him a more objective and broader line of sight than someone steeped in the industry might have. He quickly recognized that a business model transformation was needed not just a doubling down on industry-standard strategies and processes.

Rawlinson was opportunistically recruited from NielsenIQ, where he was CEO before an ownership change, though he still serves on its board. Prior to that, he was president of Grainger Global Online, the fastest growing division of B2B industrial products supplier W W .W. Grainger.

He also held executive positions with engineering and manufacturing company ITT and worked under Presidents George W. Bush and Barack Obama administrations, during the later serving as a senior economic policy advisor in the White House National Economic Council.

B2C retailing was new to him, but he’s a quick study, having a J.D. from the University of South Carolina and a Harvard M.B.A. He immediately got that retail is first and foremost a people, not a product business.

“Retail really starts at the human level,” he shard. “As I look at the future of retail, there are two clear winners. One is the big-box stores with fluorescent lighting, concrete floors, self-checkout and largely impersonal. The other is e-commerce which is algorithmic driven. They have all kinds of products consumers need, but for ordinary people, big boxes and e-commerce are really cold environments.

“In retail there is a need for something more human and more connected. Our hosts are really critical to creating that sense of human connection. A lot of retailers forgot how important it is to have a person who you trust speak to you about the product. We are prepared to take advantage of that,” he concluded.

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