business plan game studio

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.

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.

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.

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

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

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

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

How to Successfully Raise Funds for Your Video Game Studio

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 .

Don't bother with copy and paste.

Get this complete sample business plan as a free text document.

Video Game Business Plan

Start your own video game business plan

Pixel Frontier Studios

Value proposition.

Pixel Frontier Studios creates immersive, narrative-driven video games that foster strong emotional connections with players and explore unique themes and settings.

The Problem

The gaming industry is saturated with repetitive content and a lack of diversity in themes and storytelling. Gamers are looking for unique, captivating experiences that push the boundaries of conventional gaming.

The Solution

Pixel Frontier Studios focuses on creating high-quality, innovative games with memorable characters, engaging storylines, and diverse settings. Our games provide an emotional experience that keeps players invested and craving more.

Target Market

Our primary target market includes:

• Gamers aged 18-35 seeking narrative-driven experiences
• Individuals who enjoy indie games and unique concepts
• Gamers who appreciate games with diverse representation and themes

Competitors & Differentiation

Current alternatives.

• AAA game studios producing high-budget games
• Other indie game studios
• Mobile gaming companies

Pixel Frontier Studios’ commitment to diverse storytelling and innovative game mechanics sets us apart from competitors. Our team’s passion for creating unique experiences and our attention to detail ensure high-quality games that resonate with players.

Funding Needs

• Office space and equipment: $150,000
• Software and licenses: $50,000
• Salaries and benefits for the first year: $600,000
• Marketing and advertising: $100,000

Initial game development: $500,000

• Total initial funding needed: $1,400,000

Sales Channels

• Xbox Game Store
• PlayStation Store
• Nintendo eShop
• Direct website sales

Marketing Activities

• Social media campaigns
• Influencer partnerships
• Gaming conventions and expos
• Sponsored events and tournaments
• Press releases and PR

Financial Projections

2023: $1,200,000

2024: $2,000,000

2025: $3,000,000

Expenses/Costs

2023: $1,400,000

2024: $1,600,000

2025: $1,800,000

2023: -$200,000

2024: $400,000

2025: $1,200,000

• Secure funding — June 1, 2023
• Establish office space and equipment — July 1, 2023
• Complete hiring and onboarding — August 1, 2023
• Begin development of the first game — September 1, 2023
• Launch marketing campaign — January 1, 2024
• Release first game — October 1, 2024
• Begin development of the second game — November 1, 2024
• Achieve 500,000 units sold for the first game — December 31, 2024

Team and Key Roles

Ceo and creative director, oversees company strategy, game development, and overall creative vision, lead game designer.

Responsible for designing and implementing game mechanics, levels, and gameplay experiences

Lead Programmer

Manages programming team and ensures all technical aspects of the game function as intended

Lead Artist

Guides art direction and oversees production of all visual assets for the game

Narrative Designer

Develops and implements the game’s story, dialogue, and character interactions

Marketing Manager

Directs marketing efforts, including public relations, events, and social media campaigns

Partnerships & Resources

• Local game development associations and networks: Collaborate on events and initiatives, access to resources and support
• Game engine and software providers: Secure partnerships for cost-effective licenses and support
• Gaming influencers: Establish partnerships for promotion and feedback during game development

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

By alex ryzhkov, resources on video game development company.

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

Are you ready to turn your passion for video games into a thriving business? In the fast-paced and ever-growing world of video game development, it's crucial to have a solid business plan in place. According to recent statistics, the global video game market is expected to reach a staggering $293.5 billion by 2027, with the North American market accounting for a significant portion of that revenue. With such immense potential for growth, now is the perfect time to start your own video game development company.

Before diving headfirst into this exciting venture, it's essential to have a clear roadmap to success. Crafting a well-thought-out business plan will help you navigate the competitive industry and maximize your chances of success. In this blog post, we will guide you through nine crucial steps to create a comprehensive business plan for your video game development company.

So, let's get started with the first step: conducting market research. Understanding the current trends, consumer preferences, and potential market gaps is key to developing a winning strategy. By conducting thorough market research, you can identify lucrative opportunities and make informed decisions regarding your game development and marketing strategies.

Next, it's crucial to define your target audience and competition. Knowing who your ideal gamers are and understanding their demands and preferences will allow you to tailor your games to meet their expectations. Additionally, analyzing your competitors will help you identify your unique selling proposition, giving you a competitive edge in the market.

Once you've gathered all the necessary information, it's time to develop a comprehensive business plan outline. This document will serve as your roadmap, highlighting your goals, marketing strategies, and financial projections. It will also showcase your company's vision and mission, ensuring everyone involved is aligned towards a common objective.

When it comes to finances, determining your startup and ongoing costs is vital. From game development expenses to marketing budgets and overhead costs, having a clear understanding of your financial requirements will help you plan and manage your finances effectively. Creating a detailed financial forecast will also allow you to project your revenue and expenses, aiding in decision-making and attracting potential investors.

Funding options can make or break your video game development company. Exploring different avenues, such as loans, crowdfunding, or securing partnerships with publishers or console manufacturers, can provide the necessary financial resources and promotion opportunities to propel your business forward.

Establishing a legal structure and registering your company is essential for compliance and protection. Determining whether you'll operate as a sole proprietorship, partnership, or corporation and fulfilling all legal requirements will ensure your business is on solid ground.

Lastly, building a qualified team of professionals is crucial for bringing your game development dreams to life. Assembling a talented and diverse team of designers, developers, marketers, and project managers will contribute to the success of your company.

By following these nine steps, you'll be well-equipped to write a comprehensive business plan that will set the foundation for your video game development company. Let's embark on this exciting journey together and make your mark in the thriving video game industry!

Conduct Market Research

Conducting thorough market research is an essential step when starting a video game development company. This process provides valuable insights into the gaming industry, helps identify potential challenges and opportunities, and allows you to make informed decisions for your business.

Market research encompasses gathering and analyzing relevant data about the gaming market, including consumer preferences, trends, and competitor strategies. By understanding your target audience and their gaming habits, you can tailor your game development and marketing efforts to meet their needs.

• Analyze the gaming industry: Investigate the overall size and growth of the gaming industry in order to assess the potential demand for your video games. Consider factors such as market trends, consumer demographics, and popular game genres.
• Identify your target audience: Define the specific group of consumers you aim to attract with your video games. Determine their preferences, gaming platforms of choice, and spending habits to understand how to position your products in the market.
• Research competitors: Study existing video game development companies that operate in a similar genre or target the same audience. Analyze their strategies, strengths, and weaknesses to identify gaps in the market that your company can fill.
• Stay updated on industry trends: Keep a close eye on the latest developments, emerging technologies, and gaming trends. This will help you anticipate shifts in consumer preferences and adapt your business strategies accordingly.

Tips for conducting market research:

• Utilize online resources, industry reports, and market research publications to gather relevant data and insights.
• Engage in surveys or focus groups with potential gamers to understand their preferences and expectations.
• Attend gaming conferences, trade shows, and events to connect with industry professionals and stay updated on industry trends.
• Network with other game developers and industry experts to learn from their experiences and gain valuable advice.

Define Your Target Audience And Competition

Defining your target audience and understanding your competition are crucial steps in developing a successful business plan for a video game development company. By clearly identifying who your ideal customers are and analyzing your competitors, you can effectively tailor your products and marketing strategies to meet the needs and preferences of the market.

Identify your target audience: Start by determining the demographics, interests, and behaviors of the gamers who are most likely to enjoy and purchase your video games. Consider factors such as age, gender, location, gaming platforms preferences, and gaming habits. Conducting surveys, analyzing market data, and getting feedback from potential players can help you gain valuable insights.

• Segment your target audience based on different characteristics and preferences to better cater to their needs.
• Consider conducting focus groups or user testing sessions to gather feedback and refine your game concepts.

Research your competition: Thoroughly analyze the video game development companies that are already operating in your market. Identify their strengths, weaknesses, and unique selling propositions. Understanding your competition will allow you to differentiate your offerings and position your company effectively. Additionally, study their target audience and marketing strategies to gain insight into successful approaches.

• Visit industry-related forums, websites, and social media groups to stay updated on the latest trends and discussions within the gaming community.
• Conduct competitor analysis to identify gaps in the market that your company can fill.

By defining your target audience and analyzing your competition, you can develop a clear understanding of the needs and preferences of your potential customers. Armed with this information, you can create video games that resonate with your target audience and position your company as a competitive player in the industry.

Identify Your Unique Selling Proposition

Identifying and highlighting your unique selling proposition (USP) is crucial to the success of your video game development company. Your USP is what sets your games apart from the competition and gives consumers a reason to choose your products over others. It is the key factor that attracts and retains customers in a competitive market.

• Research the Market: Conduct thorough market research to understand the current trends, preferences, and demands of gamers. Analyze the strengths and weaknesses of existing games on the market to identify any gaps or untapped opportunities.
• Define Your Target Audience: Determine the specific group of gamers your games will target. Consider demographics, interests, and gaming preferences to tailor your products accordingly. Understanding your target audience will allow you to design games that cater to their interests and needs.
• Highlight Your Unique Features: Identify the unique features and gameplay mechanics that set your games apart from others. Whether it's innovative gameplay, stunning graphics, immersive storytelling, or cutting-edge technology, emphasize these aspects in your marketing materials to showcase your USP.
• Create a Compelling Value Proposition: Craft a clear and concise statement that communicates the unique value your games offer to consumers. This could be through delivering exceptional entertainment, providing a one-of-a-kind gaming experience, or offering a distinctive genre or theme that appeals to your target audience.

Tips for Identifying Your Unique Selling Proposition:

• Survey potential gamers to gather feedback on what they find appealing in video games and what they feel is missing in the market.
• Stay informed about the latest technological advancements and trends in the gaming industry to incorporate them into your USP.
• Continuously analyze your competition to differentiate your games from theirs and offer something fresh and innovative.
• Regularly reassess and refine your USP based on feedback from players and changes in the market.

Develop A Comprehensive Business Plan Outline

Developing a comprehensive business plan outline is a crucial step in successfully starting and managing a video game development company. This plan will serve as a roadmap for your company's growth and success, and will guide your decision-making process. Here are the key components to include in your business plan outline:

• Executive Summary: This section provides an overview of your company, its purpose, and its goals. It should outline the unique selling proposition and highlight the potential market opportunities you aim to capture.
• Company Description: Describe your video game development company's mission, vision, and values. Include information about your target audience, the type of games you plan to develop, and the platforms you will focus on.
• Market Analysis: Conduct thorough market research to understand the gaming industry, identify trends, and assess the competition. Analyze the target market, including demographics, preferences, and purchasing behavior.
• Organization and Management: Provide an overview of your company's organizational structure and introduce key team members and their roles. Include their qualifications and expertise.
• Product Line or Services: Detail the video games you plan to develop, including their genres, target platforms, unique features, and any planned downloadable content or expansion packs.
• Marketing and Sales Strategy: Outline your marketing and sales tactics to reach your target audience and promote your games effectively. Include your pricing strategy, distribution channels, and promotional activities.
• Financial Projections: Create detailed financial forecasts, including projected revenue, expenses, and profitability. Consider factors such as production costs, marketing expenses, and potential revenue streams from downloadable content and partnerships.
• Implementation Plan: Break down the steps required to bring your games to market. Include timelines, milestones, and the resources needed at each stage of development.
• Risk Assessment: Identify potential risks and challenges that may impact your business. Develop contingency plans to mitigate these risks and ensure the smooth operation of your video game development company.
• Keep the business plan concise and focused, highlighting the most important information. Investors and stakeholders appreciate clear and succinct plans.
• Regularly review and update your business plan to adapt to changes in the gaming industry and market conditions.
• Seek feedback from industry experts or mentors to ensure your business plan is comprehensive and realistic.

Determine The Startup And Ongoing Costs

One of the most critical aspects of writing a business plan for a video game development company is determining the startup and ongoing costs. This step is crucial for understanding the financial requirements and ensuring the sustainability of your business.

To determine the startup costs, you need to consider all the expenses involved in getting your company up and running. This includes costs such as:

• Equipment and technology: Determine the cost of purchasing or leasing computers, consoles, software, and any other necessary equipment.
• Office space: Calculate the expenses related to renting or buying office space, including rent, utilities, and maintenance.
• Salaries and wages: Determine the personnel you need to hire and their corresponding salaries and wages.
• Marketing and advertising: Consider the costs associated with promoting your games and reaching your target audience.
• Legal and professional services: Budget for legal fees, accounting services, and any other professional services required.
• Licenses and permits: Research the licenses and permits necessary to operate a video game development company and their associated costs.
• Research and development: Account for expenses related to game development, including software licenses, design tools, and other development resources.
• Consider both one-time expenses and recurring costs when determining your startup and ongoing costs.
• Create a detailed budget spreadsheet to estimate and track your expenditures.
• Get multiple quotes and compare prices for equipment, services, and office space to ensure you are getting the best value for your money.
• Include a contingency fund in your budget to account for unexpected expenses or delays.
• Keep in mind that ongoing costs will include expenses such as employee salaries, rent, marketing, and ongoing game development.

Determining the startup and ongoing costs will provide you with a clear understanding of the financial resources required to launch and sustain your video game development company. It will also help you define your funding needs and develop a comprehensive financial forecast for your business plan.

Create A Financial Forecast

Creating a financial forecast is a crucial step in the business planning process for a video game development company. It involves projecting the expected financial performance of your company over a specific period, typically three to five years. A well-prepared financial forecast will not only help you understand the financial viability of your business idea, but it will also assist you in securing funding from investors or lenders.

To create an effective financial forecast, you should start by estimating your revenue streams . Consider the different sources of income for your video games, such as game sales, downloadable content, and potential partnerships or licensing agreements. Analyze current market trends and consumer demand to make realistic revenue projections.

Next, you need to estimate your expenses . This includes the costs associated with game development, marketing, distribution, and ongoing operational expenses. Be sure to consider both one-time costs and recurring expenses to have a comprehensive understanding of your financial obligations.

Once you have estimated your revenue and expenses, you can create a financial statement that includes an income statement, balance sheet, and cash flow statement. These statements will help you assess the financial health of your business and provide a clear picture of its profitability, assets, liabilities, and cash flow.

Financial Forecast Tips:

• Be conservative in your revenue projections to avoid overestimating potential sales.
• Include contingency plans to address unexpected expenses or challenges that may arise.
• Regularly update and review your financial forecast as your business evolves.
• Consider seeking professional help from a financial advisor or accountant to ensure accuracy and reliability of your financial projections.

Explore Funding Options

Securing funding is an essential step in launching a successful video game development company. While self-funding is a viable option for some, exploring other funding options can provide the necessary resources to fuel growth and development. Here are some important funding options to consider:

• Bootstrapping: If you have personal savings or access to credit, bootstrapping your video game development company can be a viable option. This self-funding approach allows you to maintain full control over your business and retain profits.
• Angel Investors: Angel investors are individuals who provide financial support to startups in exchange for equity or a stake in the company. These investors often have industry experience and can provide valuable mentorship and connections in addition to funding.
• Venture Capital: Venture capital firms specialize in investing in high-potential startups. They typically provide larger sums of capital in exchange for an equity stake. However, venture capital funding often comes with the expectation of rapid growth and potential loss of control.
• Crowdfunding: Crowdfunding platforms, such as Kickstarter or Indiegogo, present an opportunity to raise funds from a large number of individuals who believe in your vision. It is important to create a compelling campaign that offers attractive rewards to incentivize backers.
• Loans and Grants: Traditional bank loans or grants from government agencies or non-profit organizations can provide valuable funding for your video game development company. Research and apply for loans or grants tailored to the gaming industry.
• Prepare a solid business plan and financial forecast to present to potential investors or lenders. It should clearly outline your video game development company's potential for success and profitability.
• Network and establish connections within the gaming industry to increase your chances of finding funding opportunities. Attend industry events and conferences to meet potential investors and industry professionals.
• Consider joining an incubator or accelerator program specifically designed for video game startups. These programs often provide access to funding, mentorship, and valuable resources.
• Be prepared to negotiate terms with potential investors or lenders. Seek legal advice to ensure you are making informed decisions and protecting your interests.

Define Your Company's Legal Structure And Register It

When starting a video game development company, defining your legal structure is an essential step to establish a solid foundation for your business. Different legal structures offer various options and benefits, so it's important to choose the one that best suits your needs.

1. Choose your legal structure:

• Sole Proprietorship: This structure offers simplicity and full control as an individual owner, but you are personally liable for the company's debts.
• Partnership: If you have one or more partners, a partnership structure allows you to share responsibilities, profits, and liabilities.
• Limited Liability Company (LLC): An LLC combines the benefits of a partnership and corporation. It provides liability protection while allowing flexibility in management and taxation.
• Corporation: A corporation offers limited liability protection to its owners (shareholders) and allows for potential growth by selling shares of stock.

2. Register your company:

After selecting a legal structure, you must register your video game development company with the appropriate authorities. This process varies depending on your location, so ensure you understand the specific requirements and paperwork involved.

Tips for Registering Your Company:

Consult with a Business Attorney:

Research licensing and permits:, protect your intellectual property:, consider a professional registered agent:.

By defining the legal structure for your video game development company and completing the necessary registrations, you demonstrate professionalism and establish a solid legal framework that protects your business and allows for potential growth.

Build A Qualified Team Of Professionals

Building a qualified team of professionals is crucial for the success of your video game development company. With a team of skilled individuals, you can ensure the creation of high-quality games that resonate with your target audience. Here are some important aspects to consider:

• Define the roles and responsibilities: Clearly outline the specific roles and responsibilities needed for your team. This may include game designers, programmers, artists, animators, sound engineers, and project managers.
• Seek experienced individuals: Look for professionals who have relevant experience in the gaming industry. Prioritize candidates who have worked on successful game projects and have a deep understanding of game development processes.
• Ensure a diverse skill set: It is important to have a team with a diverse skill set to cover all aspects of game development. This includes individuals with expertise in different programming languages, art styles, audio design, and storytelling.
• Promote teamwork and collaboration: Foster a collaborative environment where team members can work together effectively. Encourage open communication, brainstorming sessions, and regular team meetings to ensure everyone is aligned on project goals and objectives.
• Consider outsourcing: If you require specialized skills that are not available internally, consider outsourcing certain aspects of game development. This can help you access a wider talent pool and ensure the delivery of high-quality work.
• Provide ongoing training and development: Invest in continuous training and development programs to enhance the skills and knowledge of your team members. This can include attending industry conferences, participating in workshops, or providing access to online learning resources.
• Encourage creativity and innovation: Foster a culture that allows for creativity and innovation to thrive. Encourage your team members to think outside the box and explore new ideas in game development. This can lead to the creation of unique and captivating games.

Tips for Building a Qualified Team of Professionals:

• Clearly communicate your company's vision and goals to attract passionate individuals who align with your mission.
• Utilize online platforms and communities dedicated to game development to connect with potential team members.
• Consider conducting skill assessments or technical interviews to evaluate candidates' abilities and compatibility with your team.
• Regularly evaluate the performance of your team members and provide constructive feedback to foster growth and improvement.
• Network with industry professionals and attend gaming events to expand your connections and identify potential talent.

Writing a business plan for a video game development company is crucial for success in a competitive industry. By following these nine steps, you can ensure that your business is well-prepared and positioned for growth. Conduct market research to understand your target audience and competition, and identify your unique selling proposition to stand out. Develop a comprehensive business plan outline and determine the startup and ongoing costs, creating a financial forecast to guide your business decisions. Explore funding options and define your company's legal structure while building a qualified team of professionals to execute your vision.

• Step 1: Conduct market research
• Step 2: Define your target audience and competition
• Step 3: Identify your unique selling proposition
• Step 4: Develop a comprehensive business plan outline
• Step 5: Determine the startup and ongoing costs
• Step 6: Create a financial forecast
• Step 7: Explore funding options
• Step 8: Define your company's legal structure and register it
• Step 9: Build a qualified team of professionals

With the right business plan in place, video game development companies can capitalize on the lucrative pay-to-play model, as well as explore additional revenue streams like downloadable content and partnerships. By combining a strong understanding of the market, a solid financial plan, and a skilled team, your video game development company can thrive in this dynamic industry.

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The Ultimate Checklist for Starting a Video Game Company

• by Zachary Strebeck

So you want to develop games?

Whether you want to form a big work-for-hire studio or a bootstrapped indie game company, the basic principles are the same. Have a plan, protect your personal assets and your company’s IP, and follow the laws. I can’t underestimate the importance of adhering to a good legal structure for your company.

With that in mind, here’s my ultimate checklist for everything you need for your own game development studio:

YOUR GAME COMPANY GAME PLAN

1. draft a business plan.

A solid business plan is the basis of any new business. It contains you plan for funding the company, researching your market, developing your product, promoting the game to consumers, staying afloat, and finding success. The games business is a difficult one – planning for both success and failure is crucial part of it, and needs to be addressed before you begin.

2. Gather your team of advisors

Most entrepreneurs don’t know all of the ins and outs of starting and running a business. Any good business has a team of specialized advisors to help them. At the very least, get an attorney and a tax advisor to make sure you’re staying compliant and protecting your new business.

3. Fund your company

Businesses need money to develop and sell a product. A game company is no exception. There are a number of ways to fund your company, from bootstrapping it yourself to getting investors (whether for equity or through crowdfunding). Figure this out as part of your business plan.

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Form your company, 4. decide what kind of business entity to form.

There are a few different types of business entities, each with its own pros and cons. For limited liability (which is super important), your two main options are corporations and LLCs. Deciding which to form is a choice you should make with your attorney and tax advisor’s help.

5. Figure out how to divide up ownership

If you are the only owner in the company, things are easy – you own the whole thing. But if there are multiple owners, or some active owners and passive investors, things can get tricky. There are many options here, but it’s best to discuss them with an attorney first.

6. Avoid “dead” equity

One issue that’s common with startup companies is something called “dead” equity, where one of the founders has left the company but still owns a piece. To avoid this, you have the membership “vest” over time, so they don’t get all (or any) of their ownership interests until they show that they’re in it for the long haul.

7. Be an equity miser

Another issue that startup company founders face is giving away too much equity. Once you give it away, it’s difficult to get back, so you need to be careful and a bit of a Scrooge when handing out ownership. One great way to do this is through a dynamic equity system like the “Slicing Pie” method, which fairly distributes ownership based on actual time and money contributions.

8. Form the business entity

Once you’ve got all the issues worked out, it’s time to actually form the entity. In many ways, this is the easy part – usually there are just some forms or paperwork that need to be submitted along with a fee. However, there are many potential pitfalls in doing this wrong, so it’s best to have professional help.

9. Get your company agreements in place

Now that the company exists, you need paperwork to show all of those decisions you made earlier about ownership and control. Again, these are best drafted by a professional, rather than trusting forms you found on the Internet or get through LegalZoom. I’ve seen my fair share, and they ain’t pretty.

OWN YOUR INTELLECTUAL PROPERTY

10. get employment agreements signed.

A game company’s value is almost entirely wrapped up in its intellectual property (the game content, the brand names, and the software you create). When you hire employees, you automatically own the copyright to what those employees create (in most cases). However, the safest bet is to have a comprehensive employment agreement signed, which transfers not only copyright, but also patent and other important IP rights.

11. Sign agreements with your contractors

Unlike with employees, you DON’T automatically own copyright to work that’s done for you by independent contractors. You need a written and signed “work for hire” agreement in place. This is vital for your business, and not doing it can be a MASSIVE headache down the road. Bonus sub-topic – are you sure you know if the people working for you are employees or contractors? This can be a murky distinction, and it’s best to talk it through with your attorney.

12. Protect your trade secrets

Some things are best kept a secret. This can be inventions or processes that you plan to patent, or proprietary software code that you’ve developed. Keep these secrets under wraps by taking reasonable security measures and getting signed confidentiality agreements (otherwise known as NDAs) in place. Hint: they can be integrated into your employee and contractor agreements.

PROTECT YOUR INTELLECTUAL PROPERTY

13. choose your company and game names wisely.

Have a cool-sounding name for your new company or its first game? Hold up a second. You need to do a proper clearance search for those names before starting to use them. If you don’t, and someone is already selling a product under that name, you could open yourself up to a trademark lawsuit and lose out on all of your brand marketing.

14. Register your trademarks

Once you (or your awesome attorney) has cleared your names, it’s a good idea to get them registered with the USPTO. This puts everyone on notice that you have exclusive rights to that name, allows you to sue them in federal court, and makes you the presumptive original owner of those trademarks. These are all important things when building your brands!

15. File timely copyright registrations

Once you’ve published a copyrightable work (like a game), you need to file a federal copyright registration for that work within 90 days. If you do, you get to take advantage of legal damages dictated by statute, get your attorneys’ fees paid, and avoid having to prove how much you were actually damaged (a difficult task). It’s cheap to do – there’s no excuse for not filing a timely copyright registration.

16. Police your trademarks and copyrights

Once you’ve started your brand and released your game, you need to stay on top of any infringement that’s out there. There are a number of tools available that don’t require litigation – cease and desist letters, DMCA takedowns, filing complaints with publishing platforms, etc. Then there’s always filing a lawsuit, which is often a last resort, as it’s the most expensive and time-consuming.

STAY COMPLIANT AND PROTECT YOUR COMPANY

17. have a comprehensive privacy policy.

Unless your game isn’t connected to the Internet in any way, you’re probably taking some kind of personal information from your users. If you are, you need to have a comprehensive privacy policy available to them. This details what you collect, how you use it, and who you share it with, among other things. It’s the law – don’t skip this step!

18. Protect users’ personal information

In conjunction with your privacy policy, you should have reasonable security measures in place for protecting that personal info you collect. A plan for what to do in case of a data breach (including notification of users and mitigating further harm) is also recommended.

19. Get an ironclad terms of use drafted

There are a number of potential legal wrangles you can get into with your users. Disputes over virtual currency, in-game behavior, and termination of users’ accounts can all blow up into something much bigger (class actions). Avoid these issues with a bulletproof terms of use, limiting your liability and preventing class action lawsuits over your game.

20. Follow local regulations

Depending on where you are and where you release your game, there could be a number of local regulations. Gambling laws , game rating requirements, and many other things are dealt with on a local level and vary between countries. Make sure you’re staying on top of these when you release your game.

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That’s it! A roadmap of the legal steps for starting your new game company from the beginning to releasing your game.

Zachary Strebeck

Table of contents.

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Essential Clauses in Game EULAs: A Comprehensive Guide for Developers

A well-crafted End User License Agreement (often called a “EULA”) is essential for protecting your game studio’s intellectual property, setting clear expectations for players, and

Navigating Office Leasing Considerations for Video Game Studios

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How to start an indie game studio

Table of Contents

Key skills for starting an indie game studio

Get the equipment you need, software , securing funding for your indie game studio, bootstrapping, crowdfunding, define your target audience, market your indie game studio effectively, social media, how to sell your game, steam direct, playstation and xbox, google play and app store, sell to a publisher, stay in control of your finances.

Some of the smallest teams produce incredibly high-quality games. Look at No Man’s Sky , developed by Hello Games . It started with just one person, and although that grew, it now has an estimated revenue of $200 million (approx. £150 million).

Starting your own indie game studio isn’t a walk in the park. That’s why, we’ve put together this guide to help you start your indie game studio. 

Developing an indie game is hard work. You need to be able to design and build the game, market it to the public, and get it published. 

Some people usually begin indie studios to develop passion projects, which later can become successful or develop smaller cult followings.

If you don’t know how to design or build a game, there are online courses you can take to make sure you understand the basics. 

Sites like Udemy and Skillshare offer a range of courses, from teaching you the foundations, to more advanced dev skills.

Just like any other type of business, you can’t get the job done without the right equipment. We’ve listed the four main elements you need to consider when setting up your indie game studio.

When it comes to software, there are multiple options for you to choose from. The most common are GameMaker Studio , Unity , and Unreal Engine . 

When deciding which software you’ll use, think about how the strengths and weaknesses will affect your work. 

Unity, for example, offers great versatility and lets you make a range of games for different systems. On the other hand, Unreal Engine has many additional features that mean you can make a game without knowing how to code. 

Once you’ve decided what software you want to use, look at the hardware needed to run it. You should aim for a computer that meets the recommended requirements.

Figuring out the right computer for your development studio can be tricky. You’ll want to find the balance between a computer that can run the programs and levels you design, but doesn’t break the bank. 

Doing research before you buy anything can help you make the most of your money. If you look at other games in your intended niche, you should be able to find the specifications needed to run them. 

Make a note of these specifications, and compare them to the programmes you’ll need. This can give you a good overview of how much you’ll need to spend on your hardware. 

It’s worth noting that computers can be cheaper if you buy the components and assemble them yourself. Still, pre-built models do save you a lot of time and energy. 

You may have gotten into game development as a hobby, but by making a game studio, it has become a job. Just like with any other job, having your own dedicated workspace is essential to help you stay productive . 

Your workspace doesn’t need to be a separate building ; it can be a room in your house that you’ve converted into an office. 

If your work and personal areas crossover, you can end up feeling like you’re working too much or not enough. Having a different place to work is important for maintaining a healthy work-life balance. 

As development on your game continues, you may find yourself needing extra team members to get certain tasks done. This can involve finding people who have skills you may lack. For example, if your talents lie in graphical design and programming, you may need a sound designer to balance out your team.

These team members don’t need to be permanent workers , but rather could be freelancers hired from sites like Fiverr and PeoplePerHour . By using freelancers, you can keep your team size small, and only use them when needed — potentially limiting your costs.

Taking all your equipment and start-up costs into account, setting up your own indie game studio can be an expensive venture. Finding funding can prove difficult if you don’t know where to look. 

If you need help managing your finances, you might want to use accounting software to monitor your spending more closely. As a combination of business account and accountancy software, the Countingup app is a great tool to use.

As a business owner, the most accessible method of funding your business is to do it yourself. Using your personal funds to help the studio buy all its equipment also has the added benefit of making sure that you own everything.

On the other hand, bootstrapping can be unsustainable if you do it long-term. Business costs can quickly build up , and if your personal investment isn’t enough, you may need to use other methods. 

Using crowdfunding strategies can be an excellent way to get your game studio off the ground, once you have a demo to show. Sites like Kickstarter or Indiegogo can help your business raise much-needed funds.

Crowdfunding works most successfully when you already have a viable product, or a unique and interesting idea. You may wish to consider using artwork from your game as promotional material to entice potential customers.

The more you can excite the public about your upcoming game, the more likely they are to part with their money. Typically, developers will also offer exclusive or limited edition items (either physical or digital) to further tempt customers to get involved. 

These extra items could be anything, including: 

• Soundtracks
• In-game items
• Early access to your game or extra content

It’s all well and good to say that your audience are gamers, but different types of games cater towards different people. Casual gamers, for instance, may stick towards the popular mainstream games like FIFA and Call of Duty , rather than playing platformers like Super Meat Boy .

Even people who typically gravitate towards indie games will need a reason to choose yours over all the others currently available. When developing indie games, you have to figure out what makes your games stand out. 

Without a clear idea of your target audience, it’s easy to fall into the trap of making a game specifically for you or your friend group. This can make your game feel off-putting to outsiders, and harm your success. 

You may have made the best game ever, but if you don’t market it properly then nobody is going to buy or play it. Marketing is an essential part of game development, so you should be putting a significant effort into it. 

There are many different channels you can use to help market your games. 

Engaging with social media can build long-term relationships with your intended audience. You can start by identifying which social platform your target market uses most and promote your game there.

Posting regular updates can keep your audience engaged and excited about your upcoming game. The more interaction you get, the more users your account and posts will get shown to. 

Examples of engaging posts could include:

• Teaser trailers
• World-building content (like blog posts or audiobooks)
• Podcasts about the development process

One way to get people talking about your game is to send it to reviewers. This could be a magazine, or to influencers in the gaming industry. Provided their review is positive, you’re likely to gather a lot of interest in your game. 

Only submit your game when it’s nearing completion. Otherwise, you risk bad reviews or people completely forgetting about your game. 

You should also start a conversation with your intended reviewer before sending them your game . Unsolicited submissions can be unprofessional and might get ignored. 

Participating in events can be an excellent way to spread awareness about your game. Although attending in-person may be difficult, a large number of these events have moved online, including the Indie Games Festival . 

Attending these events can be lucrative for your business, as you can win prizes or network with industry professionals. 

Once you’ve finished your game and people know about it, it’s time to sell it. As an indie game studio, you probably won’t have access to the same distribution channels as larger companies. 

Don’t panic. Just because you might not get your game into physical stores, doesn’t mean you’ll harm its sales. As consoles have progressed, there has been a clear shift from physical sales to digital downloads. 

Hosting your game on these online store pages is getting easier for indie developers. Since they’re also official, customers have a high level of confidence in them. 

If you know about computer-based games, you might have heard of Steam, one of the most popular digital video game distribution services available. With 26 million users in September 2021 , it makes sense to sell your games on Steam.

The easiest way to do this is through Steam Direct , the distribution program designed specifically to help indie developers make their games publicly available. While the process is US-centric, UK citizens can complete a W-8BEN form for tax and payment purposes. 

The distribution process of Steam Direct is a relatively simple one. Your biggest cost will be the $100 (£75) submission fee (paid for every game you submit), but the cost is recoupable once your game has made over $1,000USD (or £750GBP). 

You may find that the distribution process is relatively long, as there is a 30-day wait between paying the submission fee and your game’s release date. 

Like most distribution services, Steam has a set of rules and guidelines about the type of content they’ll allow on their platform. These guidelines are relatively relaxed, and exist most to prevent any illegal or gratuitous content from being uploaded.

The big alternative to PC games is console. Thanks to their digital stores you are able to self-publish your games to these massive libraries. Both PlayStation and Xbox have their own services to help small indie developers get their games on their store pages. 

One of Playstation’s biggest selling points is that they are interested in any game, regardless of it’s development stage. They’ll also provide access to their marketing channels to help get your game noticed, and they don’t charge listing fees either. 

Since Xbox is part of Microsoft, any games you publish through ID@Xbox can be made available for PC too. What’s more, if you become an approved developer, you can be sent two dev kits for free. 

The dev kits make building and fine-tuning your game far simpler, and can show you exactly where the issues are.

If you’re intending to release your games on mobile, then the best options are the Google Play and App Store. 

When it comes to Google, you’ll have to pay an initial fee of $25 (or about £20) to open the account, but this lets you submit as many games or apps as you’d like. Google will also take 30% of your sales through their platform, leaving you with 70%.

It is also possible to make your games available on an Android phone without going through the Google Play store. This can be done by making the files downloadable from your website, but customers might lose confidence in the security of your game. To ensure potential customers feel as comfortable as possible, it’s better to upload on a secure channel. 

On the other hand, Apple’s App Store has an annual $99 (£75) fee before you’re allowed to publish your games (though this does provide distribution to Mac devices too). Apple’s guidelines are slightly more strict than Google’s, but submissions should still be straightforward.

While these two mobile platforms cost more than alternatives (such as the Galaxy Store or Amazon Apps), they are widely recognisable and used by the vast majority. 

You do also have the option of selling your game directly to a publisher, and they’ll pay you a lump sum. While this can seem relatively straightforward, there are some significant downsides to selling your game to a publisher.

The biggest issue is once you sell your game to them you can also lose the rights to it. This means if your game is massively successful, your company would be unable to make a sequel unless you agree a deal with the publisher. 

If you want to retain some control, you may be able to licence your game to the publisher. In this case, you would get paid a percentage of the royalties instead of a lump sum but keep your ownership of the title. 

When it comes to running your own indie game studio, there are a lot of moving parts. You need to dedicate time to coming up with ideas, designing, making, and marketing your games. 

With such a fast-paced and packed schedule, you’ll want to save time where you can. By using accounting software, you can automate significant portions of your financial management. 

The Countingup app is one example of the software you can use. With features like automatic expense categorisation, your outgoings get sorted into HMRC-compliant categories. 

Get started with a three month trial

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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.

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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