Introduction

Frequently asked questions of game company business plan

Executive Summary

Company Overview

Market Research

Service

Marketing plan

Financial Projections

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Introduction

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

Frequently asked questions of game company business plan

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

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

Executive Summary

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

Company Overview

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

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

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

Market Research

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

Service

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

Marketing plan

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

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

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

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

Financial Projections

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

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

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