When planning a video game company, you never want to bite off more than you can chew. Make sure you’re aware of what you’re getting yourself into and know the process you will have to follow. This will prepare you fully for what comes next.
There are a whole raft of legalities that you must go through before you take the plunge, but we are not going to look at those here. We’ve created a step-by-step list of the other things that you will have to do to launch a successful video game company for those who are excited for new games, like the games that can be found here.
Here’s what you’ll need to do.
Create a Business Plan
Like any business out there, video game companies require a clear business plan to succeed. Your business plan should indicate all the specifics of your business. Here are a few topics you should cover:
- How much will it cost to start and run?
- Who is our target audience?
- How much will we charge users?
- What will our name be?
Luckily for you, this step-by-step list will help you figure a few of these things out. Continue reading to find out more.
Work Out the Costs Involved in Starting a Video Game Company
A video game company requires plenty of equipment. From computers to printers, you need to create a space that facilitates the creation of video games. You should consider the costs of your employees, the facility you’ll be based in, and any insurance you’ll have to take out.
If you’re planning on starting smaller, and working from home as a one-man team, then you’ll be able to create a game with a high-powered computer and minimal specialized software. This approach will save you heaps of money but will require many sacrifices and plenty of effort.
Calculate the Running Costs of a Video Game Company
In this industry, upgrades and advancements come around almost monthly. To ensure eventual success, you’ll need to keep all your software and equipment up to date.
Budget a healthy amount each month to go towards hardware replacements and software upgrades. You’ll also need to set aside some money for utilities, office supplies, and of course, some speedy internet.
When creating a team, think about the costs. The average salary of someone in the industry is between $40 000 and $100 000, or more, per year. Managers will expect to take home at least $30 000 to $60 000. Should you require a receptionist and beta testers, keep in mind that they will need to receive $8 to $15 per hour.
Establish Your Target Audience
Who will be your audience? Everyone, from middle schoolers to fully-grown adults, plays video games in this day and age. Millennials are incredibly passionate about their fantasy worlds, so it makes sense to target them specifically.
The best games out there are games that all ages can enjoy as that increases your target market significantly; meaning that your chances of making a sale will go up.
Work Out How Much Profit a Video Game Company Can Make
The gaming industry has a huge following and therefore is worth quite a bit of money. Companies in the industry have the potential to take a large share of this wealth.
As online gaming rapidly increases in popularity, the profit potential of a video game company is limitless.
Name Your Video Game Company
Choosing the name of your business is vital. This step is challenging but is very important in the whole process. Don’t choose something completely random and irrelevant. Make sure the name is short and to the point and ties in with your ethos.
If you’re a sole proprietorship, you’ll want to make sure that you operate under a business name and not your name. Do extensive research and make sure you’ve checked out the following;
- State business records
- Federal and state trademark records
- Social Media
- Web domains
Make sure you don’t find your name idea anywhere else on the internet, and be certain to grab the domain before anyone else does.
Defining Your Brand
Your brand is everything that your company stands for. It will influence how the public perceive your company and help you stand apart from your competitors on the market.
Promoting and Marketing a Video Game Company
To attract your target audience and find your customers, you need to connect with them through various channels.
Gamers tend to stay active on YouTube, streaming sites, and social media, so make sure you regularly advertise on these sites and services.
Some companies also find success by advertising through TV commercials and magazine ads, but you’ll need to establish what works best for you. Do your market research and make sure you’ve gone over the best ways to reach that target audience.
The best way to ensure that your customers return once they’ve logged off the site is to create some good quality entertainment. Your video game should be exciting and enjoyable for long periods.
Some companies rope their customers in by developing games that make players want to know what happens next. Each level ends on a cliffhanger, or gamers become so invested in the story that they feel they must continue playing. Making deeper connections with the player through the story will help you find loyal customers.
Consider offering a free version of the game to whet your audience’s appetite and leave them wanting more.
Creating a Website
Once you’ve drawn up a plan and started defining your brand, you need to create the space you plan to operate in.
This step is essential, but many fear it is out of reach as they may have minimal experience creating a website. This hesitation would have been understandable a few years back, but there’s no reason to hesitate now with web technology advancements.
Establishing a plan and defining your brand consists of multiple steps, but you needn’t be afraid. Take one step at a time and keeping that fire inside you alive will help you get through the whole process and work your way to creating a brand that you’re proud of and excited to see grow.