video games business plan

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

  • Last Modified: February 24, 2023

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

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

Table of Contents

You might not need a business plan  now.

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

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

What is a Business Plan in a Video Game Studio Context

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

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

Why  and When a Video Game Business Plan

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

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

Executive Summary

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

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

Business Overview

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

Introduction

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

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

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

Management team / Our team

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

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

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

A Word From Us

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

Business Ownership & Structure 

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

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

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

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

Collaborations / partnerships

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

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

Key planned hires

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

Previous games and collaborations 

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

Current Development : Empy

( empy is the name of the fictional game).

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

Some aspects that could be mentioned:

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

Other merchandise

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

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

Market Analysis

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

Global Video Game Market

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

Industry Trends

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

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

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

RPG & Survival RPG

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

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

(Include all your sources)

Competition analysis

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

RPG + Survival Games

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

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

Development Studios

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

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

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

Development Schedule and Budget

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

Milestones (Tied to the Development Schedule)

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

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

Technology, Software and Tools

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

Location & Facilities

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

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

Distribution and Sales Plan

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

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

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

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

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Marketing Plan

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

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

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

Marketing Objectives

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

Emperor’s Studio ‘marketing objectives are to:

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

Video Game Marketing Campaign Strategy

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

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

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

video games business plan

Pre-release marketing tactics

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

Steam store page, tags and notification. 

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

Connect with Steam Curators

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

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

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

Developer announcements

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

Steam Store Widget

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

Language and translation (localization)

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

‘Coming soon’ Steam Page

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

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

Release Day Marketing

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

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

After Launch Marketing

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

Steam Organic Visibility

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

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

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

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

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

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

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

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

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

Social Media & Advertising

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

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

Game Industry Events

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

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

Intellectual Property

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

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

Key metrics (KPI)

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

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

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

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

Partnership with a publisher

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

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

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

Financial Plan

Key assumptions.

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

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

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

Use of Funds

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

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

Sources of Funds

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

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

Financial Forecasts

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

Financial forecasts are divided into three broad categories:

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

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

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

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

Additional Resources

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

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

video games business plan

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

video games business plan

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

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

video games business plan

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

video games business plan

How to Successfully Raise Funds for Your Video Game Studio

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

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

Zachary Strebeck, Video Game Lawyer Logo

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

  • by Zachary Strebeck

So you want to start an indie game studio ?

First thing’s first:

You need a business plan.

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

Let’s get started.

Get a business plan for your indie game studio

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

Why do you need a business plan.

You need to realize one thing:

Creating indie games is an extremely tough business.

Most games will fail.

That’s right. Read it again.

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

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

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

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

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

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

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

Indie game studio business plan - do you need one?

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

Indie games are different.

They’re different than other businesses:

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

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

In fact, most businesses have many things in common.

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

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

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

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

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

What can indie studios learn from this?

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

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

There’s a very good reason for this:

It doesn’t make much sense.

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

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

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

Keep reading!

Different types of indie studio business plans

Different models for business plans

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

The main ones are:

The Lean Canvas

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

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

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

A traditional Business Plan

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

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

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

Check it out here.

video games business plan

Working with partners – what are your expectations?

There’s one more important step:

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

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

If they do match – that’s great!

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

What are the questions? Something close to the following:

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

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

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

Get your indie game studio off the ground

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

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

Still feel like you’re clueless?

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

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

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

Hopefully the advice here is helpful for you!

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

Zachary Strebeck

Zachary Strebeck

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Table of Contents

video games business plan

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Business Plan Template for Video Game

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

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

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

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

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

Business Plan Template for Video Game Benefits

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

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

Main Elements of Video Game Business Plan Template

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

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

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

How To Use Business Plan Template for Video Game

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

1. Define your vision and mission

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

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

2. Conduct market research

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

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

3. Develop a marketing and sales strategy

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

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

4. Create a financial plan

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

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

5. Outline the development process

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

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

6. Set performance metrics and milestones

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

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

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

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

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

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

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

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

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

Video Game Company Image

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.

TRUiC's Startup Podcast

Welcome to the Startup Savant podcast , where we interview real startup founders at every stage of the entrepreneurial journey, from launch to scale.

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!

Writing a business plan -- advice for indie game developers

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

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

Our plan was to write great games

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

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

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

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

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

A plan is better than no plan

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

Have a plan and write it down

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

video games business plan

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

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

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

Things to be clear on

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

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

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

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

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

Company structure

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

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

Clear business goals

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

Cash flow is king

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

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

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

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

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

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

Seek advice

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

"No plan survives first contact with the enemy"

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

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

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How to Start a Profitable Game Business [11 Steps]

Nick

By Nick Cotter Updated Feb 02, 2024

image of a game business

Business Steps:

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

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

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

image of a game business

Are game businesses profitable?

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

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

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

How does a game business make money?

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

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

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

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

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

image of ZenBusiness logo

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

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

Resources to help get you started:

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

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

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

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

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

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

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

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

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

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

What does it cost to start a game business?

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

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

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

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

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

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

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

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

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

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

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

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

By alex ryzhkov, resources on video game company.

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

Welcome to our blog post on how to write a business plan for a video game company in 9 simple steps! The video game industry is booming like never before, with an estimated worth of over $159.3 billion in 2020 and projected to reach $200 billion by 2023. With such incredible growth, starting your own video game company can be an exciting and lucrative venture. But before diving into the world of game development, it's essential to have a solid business plan in place.

Step 1: Research the video game market

Step 9: Seek professional advice and guidance

By following these 9 steps, you'll be well on your way to creating a comprehensive and effective business plan for your video game company. So, let's dive right in and take the first step: researching the video game market.

Are you ready to turn your passion for gaming into a successful business? Keep reading to discover how you can make your mark in the exciting world of video game development!

Research The Video Game Market

Before starting a video game company, it is crucial to conduct thorough research on the video game market. Understanding the current trends and demands in the industry is essential for developing a successful business plan. Here are some steps to consider when researching the video game market:

  • Identify the different genres and types of video games that are currently popular.
  • Study the platforms and devices on which video games are most commonly played, such as PCs, consoles, and mobile devices.
  • Analyze the sales and success of recent video game releases to gain insights into consumer preferences.
  • Explore emerging technologies and trends in the video game industry, such as virtual reality or augmented reality gaming.
  • Consider regional and global market trends to determine potential target audiences and market opportunities.

Tips for Researching the Video Game Market:

  • Stay updated with industry news and publications to keep track of new developments and market shifts.
  • Engage with gaming communities and forums to understand consumer expectations and preferences.
  • Participate in gaming events and conferences to network with industry professionals and gain insights from experts.

By thoroughly researching the video game market, you can identify potential gaps or opportunities that your video game company can leverage. This knowledge will help you make informed decisions when developing your business plan and positioning your products in the market.

Identify Target Audience

In order to create a successful business plan for your video game company, it is crucial to identify your target audience . Understanding who your potential customers are will help you develop the right products and marketing strategies to effectively reach them.

Start by researching the demographics of the video game market. Consider factors such as age, gender, income level, and geographic location. This information will give you a general understanding of the overall gaming population and help you narrow down your target audience.

Next, analyze the preferences and behaviors of your potential customers. Determine what types of video games they enjoy, what platforms they use, and what features they look for in a game. This will help you create a product that meets their needs and desires.

Consider conducting market research to gather more specific data about your target audience. This could involve surveying potential customers, analyzing industry reports, or studying trends in the gaming community. The more you know about your target audience, the better equipped you will be to create products that resonate with them.

Tips for identifying your target audience:

  • Use social media to gather insights about your potential customers.
  • Observe online forums and communities related to video gaming.
  • Consider conducting focus groups to gather direct feedback from your target audience.
  • Stay updated on the latest industry trends and changes in consumer preferences.

By identifying your target audience early in the business planning process, you can ensure that your products and marketing strategies are tailored to meet their needs and expectations. This will increase your chances of success in the competitive video game industry.

Analyze Competition

In order to create a successful video game company, it is essential to thoroughly analyze the competition in the market. Understanding the strengths and weaknesses of other companies in the industry will help you identify opportunities and develop strategies to differentiate your business.

Start by researching and compiling a list of existing video game companies that also specialize in creating high quality, interactive and immersive experiences. Look for companies that focus on both PC and console releases, as this will be your direct competition.

Focus on the following aspects while analyzing the competition:

  • Product Quality: Take note of the quality of their games. Consider the graphics, gameplay mechanics, and overall user experience. This will help you gauge the level of excellence you need to achieve in your own games.
  • Unique Selling Proposition: Identify what sets your competitors apart from others in the market. Are they known for their innovative gameplay features, captivating storylines, or exceptionally well-developed characters? Determine how you can differentiate your company by offering something unique and appealing to your target audience.
  • Market Share: Examine the market share of your competitors to understand their level of success. This will give you insights into the size of the potential customer base and the demand for video games.
  • Customer Engagement: Pay attention to how your competitors engage with their customers and provide after-sales support. Look for opportunities to exceed their level of customer service and build loyal relationships with your own customers.
  • Pricing Strategy: Analyze the pricing strategies employed by your competitors. Consider the price points at which they offer their games and any discounts or promotions they may use. This will help you determine a competitive yet profitable pricing strategy for your own products.
  • Read customer reviews and feedback on your competitors' games to gain a better understanding of what players appreciate and dislike.
  • Identify any gaps or untapped opportunities in the market that your competitors have not yet addressed.
  • Keep a close eye on emerging trends and new technologies in the video game industry. Identify how your competitors are adapting to these trends and consider incorporating them into your own strategies.

By conducting a comprehensive analysis of the competition, you will be equipped with valuable insights that will help you position your video game company for success. Remember, differentiation and innovation are key in such a competitive industry.

Determine Unique Selling Proposition

When starting a video game company, it is crucial to determine your unique selling proposition (USP) to differentiate yourself from the competition. Your USP is what sets your company apart and gives it a competitive edge in the market.

To determine your USP, you should first identify what makes your video games stand out from others in the industry. Consider the following:

  • Gameplay Innovation: Are your games introducing new and unique gameplay mechanics or features that are not currently offered by other companies? This could be a major selling point for your company and attract gamers looking for fresh experiences.
  • Immersive Worlds: Do your games offer rich and immersive worlds that captivate players and allow them to escape reality? Creating unique worlds and environments can be a powerful selling point and attract gamers who crave exploration and adventure.
  • Compelling Characters: Are your games known for their deep, well-developed characters that players can emotionally connect with? Unique, relatable characters can create a strong emotional bond with players and attract a passionate fan base.
  • Highlight the aspects of your games that make them different and better than what is currently available in the market.
  • Conduct market research to understand what qualities gamers value most in video games, and tailor your USP to align with those preferences.
  • Consider the long-term potential of your USP. Will it also be relevant and appealing to gamers in the future?

By determining your unique selling proposition, you can position your video game company as a standout player in the industry, attracting both gamers and potential investors. It will act as the foundation on which you build your brand and marketing strategy.

Conduct Market Research

Market research is a crucial step in developing a successful business plan for a video game company. It allows you to gather essential data and insights that will help you make informed decisions and gauge the viability of your video game business idea.

To conduct effective market research, start by identifying your target audience . Determine the demographics, preferences, and behaviors of the gamers who are most likely to be interested in your video game offerings. This information will guide your business strategies and help you tailor your products to meet their expectations.

Next, carry out a thorough analysis of the competitive landscape . Evaluate your potential competitors and their offerings. Identify their strengths and weaknesses, and determine how your video game company can differentiate itself in the market. This analysis will help you determine your unique selling proposition (USP) and position your company effectively to attract customers.

Market research goes beyond understanding your target audience and competition. It also involves assessing the overall market for video games, including industry trends, consumer demand, and emerging technologies. This information will help you identify opportunities and potential challenges that may arise in the gaming industry.

Tips for Conducting Market Research:

  • Utilize both primary and secondary research: Primary research involves collecting data directly from potential customers through surveys, interviews, or focus groups. Secondary research involves analyzing existing data from industry reports, market studies, and online resources.
  • Stay updated on industry trends: Subscribe to industry publications, attend gaming conferences, and join relevant online communities to stay informed about the latest trends in the video game market.
  • Engage with your target audience: Interact with gamers through online forums, social media platforms, and gaming communities. Get their feedback on your ideas and gather insights that can help shape your products.
  • Monitor and analyze customer reviews: Pay attention to customer reviews and ratings of competing video games. This will provide valuable insights into what gamers like or dislike about specific features or gameplay experiences.

By conducting comprehensive market research, you will be equipped with the necessary knowledge to make informed decisions and develop a strong foundation for your video game company's success.

Define Company Goals and Objectives

Defining clear and specific goals and objectives for your video game company is crucial to its success. These goals will guide your company's overall direction and provide a roadmap for achieving success in the industry. Here are some key steps to help you define your company's goals and objectives:

  • Evaluate your vision and mission: Start by articulating your company's vision and mission statements. This will help you establish a clear purpose and direction for your business.
  • Set measurable and realistic goals: Identify specific and measurable goals that align with your company's vision and mission. These goals could include financial targets, market share objectives, or even creative aspirations.
  • Break down your goals into objectives: Once you have established your goals, break them down into smaller, actionable objectives. This will allow you to create a step-by-step plan for achieving your larger goals.
  • Align your goals with market trends: Research current trends in the video game industry to ensure that your goals and objectives are aligned with market demand. This will help you stay relevant and competitive.
  • Regularly review and update your goals and objectives to adapt to changes in the industry. Stay flexible and willing to adjust your course if necessary.
  • Ensure that your goals and objectives are realistic and achievable. Setting overly ambitious targets may lead to frustration and disappointment.
  • Involve your team in the goal-setting process. Seek input from key stakeholders and listen to their perspectives to foster a sense of ownership and commitment to the goals.

By defining your company's goals and objectives, you create a strong foundation for your business and provide a clear direction for your team. Remember to regularly evaluate and adjust your goals as needed to stay on track and succeed in the dynamic video game industry.

Create A Thorough Business Plan Outline

Once you have conducted thorough research on the video game market, identified your target audience, analyzed the competition, and determined your unique selling proposition, it is time to create a comprehensive business plan outline for your video game company. This is a crucial step in laying the foundation for your company's success, as it will serve as a roadmap for all your future business activities.

When creating your business plan outline, it is essential to include the following key components:

  • Executive Summary: This section provides an overview of your video game company, its mission, vision, and unique selling proposition. It should be concise yet captivating to grab the attention of potential investors or partners.
  • Company Description: Clearly define the nature of your video game company, discussing its structure, legal status, and core values. Describe the types of video games your company will focus on and how they align with the market demand.
  • Market Analysis: Present a detailed analysis of the video game market, including market size, trends, and growth potential. Discuss the target audience you have identified and the specific needs your video games will fulfill.
  • Product Line: Outline the video games you plan to develop, emphasizing their unique features and how they differentiate from existing offerings in the market. Include information on whether you intend to create original intellectual properties (IPs) or license existing ones.
  • Marketing Strategy: Describe your plan for promoting your video games to reach the target audience effectively. Outline the marketing channels you will utilize, such as social media, online advertising, or partnerships with influencers or gaming communities.
  • Operations Plan: Detail the process of developing, testing, and launching your video games. Include information about the technology and resources required, as well as any partnerships or external services necessary for smooth operations.
  • Financial Projections: Provide a projection of your video game company's financial performance, including revenue, expenses, and profitability. Consider factors such as production costs, marketing expenses, and expected sales volume.
  • Risk Assessment: Identify potential risks that your video game company may face, such as technological disruptions, changing market trends, or intellectual property infringements. Develop strategies to mitigate these risks and ensure the long-term sustainability of your business.
  • Timeline and Milestones: Set specific milestones and a timeline for the development and release of your video games. This will help you track progress and stay aligned with your planned objectives.

Tips for creating a thorough business plan outline:

  • Be concise and clear in your writing, ensuring that the outline is easy to follow and understand.
  • Research and use industry-specific terminology to showcase your knowledge and expertise.
  • Include supporting data and market research to strengthen your arguments and claims.
  • Regularly review and update your business plan outline to adapt to changing market conditions and opportunities.
  • Consider seeking feedback from experienced professionals or mentors to refine your plan.

Creating a thorough business plan outline will not only provide direction for your video game company but also serve as a convincing document when approaching potential investors or financial institutions for funding. Take the time to carefully consider each component and ensure they align with your overall objectives and goals.

Determine Startup Costs And Funding Sources

One of the crucial steps in starting a video game company is determining the startup costs and finding the necessary funding sources. Estimating the initial expenses and securing the required capital is vital for turning your business idea into a reality. Here are some important factors to consider in this step:

1. Calculate Startup Costs: Begin by identifying all the expenses involved in starting and operating your video game company. This includes costs associated with game development, such as software and equipment purchases, hiring developers, artists, and designers, as well as office space, utilities, marketing, and legal fees.

2. Research Funding Options: Explore various funding sources to obtain the capital needed to launch your business. Some potential funding options include personal savings, bank loans, venture capital firms, crowdfunding platforms, and grants specifically tailored for the gaming industry.

3. Develop a Financial Plan: Create a thorough financial plan that outlines your projected expenses, revenue streams, and anticipated profits. This will help you determine the amount of funding required and showcase its potential return on investment to potential investors or lenders.

4. Seek Investors or Partnerships: Consider approaching investors who specialize in the gaming industry or seek partnerships with established companies in the field. This can provide both financial support and valuable industry knowledge and connections.

Determining startup costs and finding the right funding sources requires careful research and planning. It is essential to conduct thorough market analysis, develop a detailed financial plan, and explore various options to secure the necessary capital. With a well-prepared financial strategy, you can take the crucial step toward launching a successful video game company.

Seek Professional Advice and Guidance

Starting a video game company can be a complex endeavor, and seeking professional advice and guidance is crucial to ensure you navigate the process successfully. Here are some important steps to take:

  • Research and identify professionals: Look for experts who specialize in the video game industry and have experience in business development. They can provide valuable insights and guidance specific to your venture.
  • Network with industry professionals: Attend gaming conferences, join online forums, and connect with individuals who have already established successful video game companies. They can provide mentorship and offer valuable advice based on their own experiences.
  • Consult with a business attorney: A business attorney can assist with legal aspects such as company formation, intellectual property rights, and partnership agreements. They can ensure your business operates within legal boundaries and protect your interests.
  • Engage with a financial advisor: Assembling a team of professionals, including a financial advisor, can help you understand the fiscal aspects of running a video game company. They can assist with financial planning, budgeting, and finding funding sources.

Tips for Seeking Professional Advice and Guidance:

  • Be prepared with specific questions and objectives when consulting with professionals. This will help you make the most of your time and ensure you receive targeted advice.
  • Research and compare different professionals to find those who align with your goals and values. Look for individuals who have a track record of success in the video game industry.
  • Attend industry events and conferences to meet professionals face-to-face. Building personal connections can open doors to valuable advice and opportunities.
  • Utilize online resources, such as industry blogs and forums, to gather information and seek guidance from experts and fellow entrepreneurs.
  • Remember, seeking professional advice and guidance doesn't mean relinquishing control of your vision. It enhances your knowledge and equips you with the tools to make informed decisions for your video game company.

By seeking professional advice and guidance, you can tap into the expertise of industry veterans and ensure your business plan aligns with industry standards and best practices. This investment of time and resources will increase your chances of success and give you the confidence to navigate the competitive and ever-evolving world of video game development.

In conclusion, creating a business plan for a video game company requires careful research and analysis. By understanding the video game market, identifying the target audience, and analyzing the competition, a strong foundation can be built for success. Furthermore, determining a unique selling proposition and conducting thorough market research will enable the company to stand out in a crowded industry.

Defining clear company goals and objectives, creating a detailed business plan outline, and calculating startup costs and funding sources are essential steps in developing a comprehensive business plan. Seeking professional advice and guidance can also provide valuable insights and help navigate potential challenges.

Finally, it is crucial to emphasize excellent customer service and after-sales support, as well as the development of original IPs and the licensing of existing properties to create additional content. A successful marketing plan will be crucial in promoting the company's products and ensuring continued growth and profitability.

By following these nine steps to create a business plan, a video game company can increase its chances of success in a competitive and rapidly evolving industry.

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The Complex World of the Video Game Company

MAR.10, 2014

The Complex World of the Video Game Company

Tread lightly in the video game industry in terms of trying to startup too fast. These types of companies come and go because of the high risk of the market not liking the developed product or the risk of problems developing with the games. Video games today represent complex software developed by technology experts . Many versions can be played online by virtual communities, while others are played alone or only with others in the same room. Games target different markets, like children under 12 years old or teenager. Markets are also segmented by interest, like sports, military, or science fiction.

Startups have two options in business models

In the first model, the company develops the software, usually using a team of developers. Another business path that can be taken is selling licensed video games developed by other companies. Either way, it requires a significant amount of capital to get a video game business up and running. Other things to keep in mind during the development of a business plan for a video game company include the following:

• The amount of capital raised needs to cover the cost of software development, online or storefront setup, development team expenses, and the first few years of operations or expected profitability, whichever comes first • The staff must have specialized expertise in software development and in-depth knowledge of video game marketing and the video game industry • Extensive market research is mandatory because this is a highly competitive industry; conduct research on the types of video games the target gaming community is hoping to see in new releases in the near future

• Business developed video games need extensive testing; many companies have failed because they did not thoroughly test their product before release • Development of the product distribution channels is critical, and include game retail chains, business owned brick-and-mortar stores, and online stores; if selling online, games can be sold as downloads or shipped as DVDs • The business needs to develop clear-cut policies on game exchanges, returns, and upgrades. • Prepare a video game business plan that includes a marketing plan, pro-forma income statements, balance sheets, and cash flow projections

Careful and in-depth business planning will go a long way towards convincing venture capitalists or other types of investors to commit funds to a risky business. The gaming industry is volatile and changes rapidly as technology advances. Video games are getting increasingly sophisticated, so the games most likely to sell are filled with features like interactive play and virtual community capacity.

Developing a business plan for a video game company requires close attention to a number of details that are important to success in a competitive industry. OGS Capital professional business plan writers can provide critical assistance to business owners who need a highly professional business plan that engages potential investors.

Download The Complex World of the Video Game Company in pdf

OGS capital writers specialize in business plan themes such as writing a strategic business plan , business plan for an internet based company , virtual assistant business plan , business plan SaaS , business plan for mobile app , internet radio business plan , online store business plan and many others.

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video games business plan

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

video games shop business plan

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.

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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.

projected profit and loss statement example in a video games shop business plan

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.

example of projected balance sheet in a video games shop business plan

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.

example of cash flow forecast in a video games shop business plan

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).

initial financing plan in a video games shop business plan

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.

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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.

Screenshot from The Business Plan Shop's Financial Forecasting Software

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!

Guillaume Le Brouster

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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Home » Sample Business Plans » Wholesale & Retail

A Sample Video Game Store Business Plan Template

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

Why Start a Video Game Store?

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

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

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

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

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

1. Industry Overview

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

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

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

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

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

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

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

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

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

2. Executive Summary

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

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

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

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

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

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

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

3. Our Products and Services

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

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

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

4. Our Mission and Vision Statement

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

Our Business Structure

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

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

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

  • Chief Executive Officer (Owner)
  • Store Manager

Merchandize Manager

Sales and Marketing Manager

  • Accountants/Cashiers
  • Store Attendant/Customer Services Executive

5. Job Roles and Responsibilities

Chief Executive Officer – CEO (Owner) :

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

Accountable for fixing prices and signing business deals

Responsible for providing direction for the business

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

Responsible for signing checks and documents on behalf of the company

Assesses the success of the organization

Store Manager:

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

Accountant/Cashier

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

Store Attendant/Client Service Executive

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

6. SWOT Analysis

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

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

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

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

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

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

  • Opportunities:

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

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

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

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

7. MARKET ANALYSIS

  • Market Trends

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

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

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

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

8. Our Target Market

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

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

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

Our competitive advantage

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

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

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

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

9. SALES AND MARKETING STRATEGY

  • Sources of Income

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

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

10. Sales Forecast

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

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

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

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

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

  • Marketing Strategy and Sales Strategy

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

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

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

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

11. Publicity and Advertising Strategy

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

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

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

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

12. Our Pricing Strategy

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

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

  • Payment Options

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

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

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

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

13. Startup Expenditure (Budget)

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

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

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

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

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

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

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

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

14. Sustainability and Expansion Strategy

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

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

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

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

Check List/Milestone

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

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Gaming Lounge Business Plan Template

Written by Dave Lavinsky

gaming lounge business plan

Gaming Lounge Business Plan

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

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

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

Download our Ultimate Business Plan Template here >

What Is a Business Plan?

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

Why You Need a Business Plan

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

Sources of Funding for Gaming Lounge Businesses

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

Finish Your Business Plan Today!

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

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

Executive Summary

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

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

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

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

Company Overview

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

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

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

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

Include answers to questions such as:

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

Industry Analysis

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

While this may seem unnecessary, it serves multiple purposes.

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

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

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

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

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

Customer Analysis

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

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

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

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

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

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Competitive Analysis

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

Direct competitors are othe r gaming lounge businesses. 

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

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

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

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

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

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

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

Marketing Plan

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

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

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

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

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

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

Operations Plan

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

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

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

Management Team

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

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

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

Financial Plan

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

Income Statement

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

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

Balance Sheets

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

Cash Flow Statement

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

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

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

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

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

Gaming Lounge Business Plan FAQs

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

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

How Do You Start a Gaming Lounge Business?

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

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

Where Can I Download a Free Business Plan Template PDF?

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

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

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

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OR, Let Us Develop Your Plan For You

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

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

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Video Game Lounge Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Entertainment Industry » Gaming Industry

Video Game Lounge Business

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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Video game startups could be a bright spot for VC in 2024

video games business plan

The global video game industry makes more money each year than movies and music combined. But that doesn’t mean the sector was immune to the macroeconomic impacts of the last few years. Gaming companies have held sizable layoffs , and venture funding to the category hit a five-year low in 2023. But VCs are optimistic that things will turn around this year.

Gaming startups raised $2 billion last year, according to a report from video game-focused VC Konvoy Ventures. 2023’s total was down significantly from 2021, $9.9 billion, and 2022, $6.7 billion.

Many VCs think that 2024 could be a bloodbath for startups, generally, as exits aren’t likely to return to any kind of normalcy until 2025; many companies will run out of money and have to shut down. But video games might be an outlier, according to some VCs.

For one, there were still a lot of positive milestones for the sector in 2023. There were multiple titles released last year that garnered huge audiences, including Baldur’s Gate 3 and Hogwarts Legacy , which each sold more than 22 million copies. Despite a flat year for growth in terms of the overall gaming industry, video games are still projected to grow into a $229 billion industry by the end of the decade.

The category is also changing, which opens the door for startups to launch alongside new trends. As drama around Apple’s App Store fees continues to persist, the industry is moving away from mobile games — which traditionally raised the most venture money — and toward cross-platform games, which are more expensive to make, but more lucrative, too. Unlike some categories, AI is just in its early innings in video games and will likely start to stake its place this year.

Josh Chapman, co-founder and managing partner at Konvoy, said the industry should return to normal growth in 2024. The increase in activity caused by tourist investors coming in due to pandemic-fueled gaming spikes and the crypto folks backing web3 gaming has all retreated. The industry can return to organic growth this year, he said.

“A lot of the web3 and crypto stuff in gaming sort of evaporated last year,” Chapman said. “The lack of web3 gaming companies pitching in the market led to an overall drop in deal flow. That’s one subsector of gaming, everything else stayed pretty strong.”

Ilya Eremeev, managing and general partner at The Games Fund, told TechCrunch that despite the industry coming off of a more challenging year for fundraising there is a lot to be excited about. One of the main things is the amount of developer talent available after the industry shed thousands in headcount through layoffs last year. Plus, compensation for these positions has gone down, which means startups might be able to land top talent in this market.

While some of the tourist investors have exited the space, corporates have remained active and have started to participate more at the early stages. It also goes against the trends in the broader venture space, where corporate VCs participated in the lowest percentage of U.S. deals in 2023 in nine years, according to PitchBook data.

“Strategics in Asia trying to run overseas operations in Europe and in the U.S., especially in Europe, they realized there is a growth opportunity in this region,” Eremeev said. “Sometimes they accumulated a lot of capital, they need to invest and are more open for high-risk deals and they invest in early stage.”

But the biggest trend to watch in video games this year is AI. While the AI frenzy in 2022 sparked a lot of existing companies to tout their AI prowess or a lot of companies to start building fast, it wasn’t as immediate of a jolt to the video game sector, Eremeev said. But companies are starting to launch, and they could have big implications — especially regarding the costs associated with game creation.

This gaming startup tries to show ‘AI + crypto’ is not a fad

Mobile ruled the gaming space for a long time, not just because the games were popular, but because they weren’t as expensive to produce as, say, an immersive data-heavy PC game. This made them more venture-backable. Sofia Dolfe, a partner at Index Ventures focused on gaming, said that watching AI unfold in the video game sector is one of the things she’s tracking the most this year.

“We are at the early innings of AI, it will lower the ability to create something, it will also lower the barrier for some areas of gaming that have been less VC investable,” Dolfe said. “Triple AAA quality games on PC that had really long-form creation cycles, it didn’t lend itself as much with the venture model as mobile games, bringing down those costs we will see a lot of studios being built that leverage that technology that I’m excited about.”

Generative AI embedded in games is another development to watch. There could be really interesting advancements where games can become more of a choose your own adventure in a way if AI allows users to fully control every aspect of the game, including NPCs (non-playable characters). This will of course have to have guardrails and guidelines, Eremeev said.

Interestingly, no investor mentioned AR or VR as an area of growth they are excited about this year. But with the current list of big video game releases set for 2024, and with Disney taking a 15% stake in Epic Games just last week, VC investors may have good reason to be optimistic about this year and video game startups in the long term.

“It’s going to be a very tricky and challenging year for the gaming industry but some amazing opportunities will emerge,” Chapman said. “If you look at Halo, Halo was built in 2001. League of Legends was built in 2009. Tough times produce incredible companies.”

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  1. Business Plan for Video Game Studio

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    1. Conduct Market Research: Understanding the market landscape, trends, and consumer preferences is crucial for the success of your video game studio. Identify potential gaps and opportunities that align with your vision. 2. Identify Target Audience: Determine who your ideal gamers are and analyze their demographics, preferences, and interests.

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    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.

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    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.

  24. Video game startups could be a bright spot for VC in 2024

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