Are you interested in starting your own Game Company Business?
If you're reading this, you're probably interested in starting your own game company. Congratulations! This is a hugely rewarding and exciting industry to be a part of. But where do you start? There's a lot to think about when starting a game company, from the initial planning stages to the day-to-day operations of running a business. In this series of blog posts, we'll walk you through everything you need to know to get your game company up and running. In this first post, we'll cover the basics of what you need to do to get started. We'll talk about the different types of game companies, the steps you need to take to get your business off the ground, and some of the challenges you'll face as a new game company. So let's get started!
Global Market Size
The global video game market was worth an estimated $152 billion in 2019, up from $108 billion in 2017. The market is expected to grow to $196 billion by 2022. The United States is the largest market for video games, with a revenue of $30.4 billion in 2019. China is the second largest market, with a revenue of $27.5 billion.
There are a few key things to think about when you’re targeting a market for your game company business. Who is your target audience? What are their gaming preferences? How will you reach them? Your target audience should be gamers who are interested in the type of games you make. If you make mobile games, your target audience should be people who play mobile games. If you make console games, your target audience should be people who play console games. Your target audience’s gaming preferences will dictate what kind of games you make. If you want to make games for a specific platform, you’ll need to make sure your target audience prefers that platform. You can reach your target audience through a variety of channels, including social media, online advertising, and PR. You should also consider exhibiting at gaming conventions, which are a great way to reach a large number of gamers in one place.
There are a few different business models that game companies can use to generate revenue. The most common model is the subscription model, where customers pay a monthly fee to access the company’s games. This model is often used by online multiplayer games, as it provides a steady stream of income that can be used to fund server maintenance and other costs. Another common business model is the free-to-play model, where games are free to download and play but also offer in-game microtransactions. This model has become increasingly popular in recent years, as it allows players to try out a game before they commit to spending any money. Finally, some game companies use a hybrid model, where they offer both free-to-play and subscription-based games. This allows them to reach a wider audience and generate revenue from multiple sources..
As with any business, starting a game company requires a clear understanding of the competitive landscape. Who are your potential customers? What do they want? Who are your competitors, and what are they offering? Competitive analysis is an ongoing process that should be revisited regularly, as the market landscape can change quickly. Here are a few tips to get you started:
1. Know your audience. Before you can even begin to think about starting a game company, you need to understand your potential customers. Who are they? What do they want? What motivates them?
2. Research your competition. You can't start a business without understanding who your competitors are and what they're offering. What are their strengths and weaknesses? What are they doing right, and what could they be doing better?
3. Find your niche. In order to succeed in the competitive landscape, you need to find your niche. What can you offer that your competitors can't? What unique perspective can you bring to the market?
4. Keep up with industry trends. The game industry is constantly changing, so it's important to stay up-to-date on industry trends. What new technologies are emerging? What are the latest trends in game design? What do players want?
5. Plan for success. Success in the game industry takes more than just talent; it takes planning and preparation. What are your long-term goals? What milestones do you need to achieve along the way? How will you know if you're on track?
6. Be flexible. The game industry is unpredictable, so it's important to be flexible in your plans. Be prepared to pivot if necessary, and always be open to new opportunities.
7. Persevere. The game industry is tough, but if you're passionate about games and willing to work hard, you can be successful. Never give up on your dreams, and always strive to be the best.
If you're thinking about starting a game company, there are a few things you should keep in mind. First, you need to be able to create high-quality games that people will want to play. Second, you need to have a solid business plan and be able to market your games effectively. And third, you need to be prepared to work hard and long hours to make your business a success. If you can do all of these things, then you'll be well on your way to starting a successful game company.
Why write a business plan?
A business plan is a critical tool for businesses and startups for a number of reasons:
Business Plans can help to articulate and flesh out the business’s goals and objectives. This can be beneficial not only for the business owner, but also for potential investors or partners
Business Plans can serve as a roadmap for the business, helping to keep it on track and on target. This is especially important for businesses that are growing and evolving, as it can be easy to get sidetracked without a clear plan in place.
Business plans can be a valuable tool for communicating the business’s vision to employees, customers, and other key stakeholders.
Business plans are one of the most affordable and straightforward ways of ensuring your business is successful.
Business plans allow you to understand your competition better to critically analyze your unique business proposition and differentiate yourself from the market.
Business Plans allow you to better understand your customer. Conducting a customer analysis is essential to create better products and services and market more effectively.
Business Plans allow you to determine the financial needs of the business leading to a better understanding of how much capital is needed to start the business and how much fundraising is needed.
Business Plans allow you to put your business model in words and analyze it further to improve revenues or fill the holes in your strategy.
Business plans allow you to attract investors and partners into the business as they can read an explanation about the business.
Business plans allow you to position your brand by understanding your company’s role in the marketplace.
Business Plans allow you to uncover new opportunities by undergoing the process of brainstorming while drafting your business plan which allows you to see your business in a new light. This allows you to come up with new ideas for products/services, business and marketing strategies.
Business Plans allow you to access the growth and success of your business by comparing actual operational results versus the forecasts and assumptions in your business plan. This allows you to update your business plan to a business growth plan and ensure the long-term success and survival of your business.
Business Plan Content
Many people struggle with drafting a business plan and it is necessary to ensure all important sections are present in a business plan:
Competitor Analysis & Advantages
Marketing Strategies & Plan
Plan of Action
The financial forecast template is an extensive Microsoft Excel sheet with Sheets on Required Start-up Capital, Salary & Wage Plans, 5-year Income Statement, 5-year Cash-Flow Statement, 5-Year Balance Sheet, 5-Year Financial Highlights and other accounting statements that would cost in excess of £1000 if obtained by an accountant.
The financial forecast has been excluded from the business plan template. If you’d like to receive the financial forecast template for your start-up, please contact us at email@example.com . Our consultants will be happy to discuss your business plan and provide you with the financial forecast template to accompany your business plan.
Instructions for the Business Plan Template
To complete your perfect Game Company business plan, fill out the form below and download our Game Company business plan template. The template is a word document that can be edited to include information about your Game Company business. The document contains instructions to complete the business plan and will go over all sections of the plan. Instructions are given in the document in red font and some tips are also included in blue font. The free template includes all sections excluding the financial forecast. If you need any additional help with drafting your business plan from our business plan template, please set up a complimentary 30-minute consultation with one of our consultants.
Ongoing Business Planning
With the growth of your business, your initial goals and plan is bound to change. To ensure the continued growth and success of your business, it is necessary to periodically update your business plan. Your business plan will convert to a business growth plan with versions that are updated every quarter/year. Avvale Consulting recommends that you update your business plan every few months and practice this as a process. Your business is also more likely to grow if you access your performance regularly against your business plans and reassess targets for business growth plans.
Want a Bespoke Business Plan for your Game Company Business?
Avvale Consulting has extensive experience working with companies in many sectors including the Game Company industry. You can avail a free 30-minute business consultation to ask any questions you have about starting your Game Company business. We would also be happy to create a bespoke Game Company business plan for your Game Company business including a 5-year financial forecast to ensure the success of your Game Company business and raise capital from investors to start your Game Company business. This will include high-value consulting hours with our consultants and multiple value-added products such as investor lists and Angel Investor introductions.
Avvale Consulting is a leading startup business consulting firm based in London, United Kingdom. Our consultants have years of experience working with startups and have worked with over 300 startups from all around the world. Our team has thousands of business plans, pitch decks and other investment documents for startups leading to over $100 Million raised from various sources. Our business plan templates are the combination of years of startup fundraising and operational experience and can be easily completed by a business owner regardless of their business stage or expertise. So, whether you are a budding entrepreneur or a veteran businessman, download our business plan template and get started on your business growth journey today.