Whether you have a sandbox game developed in your mind or are building a MMORPG (massively multiplayer online role-playing game) step-by-step, it is time to start your video game business to put your video game visions into serious play. The most successful business owners are the ones who take the time and expend the energy to put everything into place when starting a business, which ensures that the outcomes will be poised for profitability and growth. Toward that end, start your video game venture by adopting the basics we’ve offered in this article.
Researching Customers and Competitors
First, consider your potential customer base and what they need or want in their game play. Are your customers looking for the most popular triple-A games or do they like freedom to play a game as they choose? Are they consumers who spend a large amount of money on games and supporting devices or do they have a console and purchase only the games that will fit the console model? These questions will help form your decisions about the kind of video game business you’ll start. Use your decisions around the research to narrow your perspective and refine your vision.
In addition to researching potential customers, research all competitors who may introduce games within the genre or platform you’ve selected for your business. You’ll want to know if their customers are satisfied with the games, accessories, customer service, and pricing of the games and accessories. Determine where your competitors market and sell their products or offerings and evaluate the success of those efforts. And, if possible, determine the business models used by your competitors, as well. The information you gather in this process will inform critical decisions for your video game business.
In the last portion of your research, you will examine ways to differentiate your business from that of any other competitor. Establishing your business identity as unique and identifiable allows your business to bypass competitors and bring clients directly to your door.
Constructing Your Business Plan
The next area of consideration for your video game business will be found in compiling your business plan template for a startup business. Undoubtedly, this is the primary means you’ll have of defining the mission and goals of your business and how those will translate into actionable processes and successful results. Within your business plan, you’ll present an executive summary, a thorough financial plan, the marketing strategy for your video game company, and the operational structure. You’ll include a forecast for the first year and complete other details that will support your business plan.
Securing Funding
As soon as your business plan is complete, you’ll want to consider approaching lenders or investors, if funding is needed to support your startup. The financial projections included in your video game business plan will be the perfect background information to offer to banks, lending institutions, investors or other interested parties. You’ll want to carefully examine any lending or investment offers to determine if the details of the contract are fair and reasonable. Use caution when a lender asks for a high interest rate or an investor seeks a percentage of your company. If needed, consult with an attorney to determine that the contract is fair and legally sound.
Hiring and Training Personnel
After securing any needed funding or seed money, you’ll be in a good position to hire personnel for your video game company. Because of the vast computer-related knowledge and expertise required for a video game developer position, you’ll want to thoroughly assess the training, employment history and capabilities of prospective game developers. Game developers should have certifications and a degree in game development to be considered for hire.
In essence, the games your company develops will be a crucial element to the success of your company, and the execution of each game must be flawless to produce an enjoyable gaming experience. Additional personnel, such as administrative team members, should be employed to meet startup business needs and bring specific employment qualities to your company. All personnel should be trained in their individual roles and in the organization of the company. Clearly communicate the goals and mission of the company to everyone on the team and specify how the company will best function to meet the expectations of the stakeholders.
Establishing Your Brand Identity
In the video gaming industry, more so than in most other industry sectors, your brand needs to be highly-visible and identifiable across all packaging, marketing and sales efforts. A brand name, logo, color patterns, and other identity-related features can create a successful video game business simply by customer recognition of these markers. Register any copyrighted slogans or taglines, trademark any logos or brand features, and patent any proprietary game development elements, as needed. Legally cover all aspects of your business in this regard, as the competition for gamers is intense and protecting your rights as a video game business is integral to your success and long-term growth.
Marketing Goals and Strategy
Begin every marketing conversation by defining and redefining the goals of your video game business, as the goals will trigger the distribution of games and the distribution will trigger the target audience you choose. Consider the best marketing efforts for your video game business and the marketing strategies that can be tied to it. For example, if your video game business releases a game that can be played only on a particular console, your marketing strategy and distribution of the game will be limited by the sales and distribution of the console that aligns with it. While there is nothing out of perspective in such an effort, the marketing choices your video game business will make must conform to the console marketing plans and those of any accessories for that console. This creates a very specific set of marketing goals and attached strategies.
If this model was flipped to examine that of games released across all platforms; including consoles, personal computers, cellphones, and virtual reality devices, the opportunities to create effective marketing strategies to support the games widens considerably. Using cloud services to allow gamers to be streamed live offers further opportunities, as many gamers learn how to play games by watching influencers make their moves in the games.
The main conduit for marketing strategies overall, regardless of game configurations, is with the social influencers who play and demonstrate games and accessories for their audiences. This is the primary driver for game purchasers and, as such, you’ll want to ensure your company creates relationships with influencers and collaborates with those who garner audiences of thousands, if not millions of players.
Finally, after researching your audience and competitors, building your business plan, securing funding, hiring personnel, establishing your brand and strategizing your marketing goals, establish milestones within your video game business with a vision and timeline attached to each. Such milestones will regularly contribute to the continued long-term growth and success of your video game business.