The Many Purposes of the Business Plan


Your studio's business plan will come into play during all phases of the company's operation, in a variety of roles:

  • Strengthening your own convictions. The research leading to a business plan will help you determine whether the opportunity you identified really exists. If you want to start a motion-capture studio, and 8 out of 10 local studios you poll say they would use the service, you're on your way to success.

  • Identifying business opportunities. Sometimes, the research process itself will reveal ancillary sources of business you might not have thought about. For example, while asking local publishers about their interest in full-service game development, they might tell you that their existing stable of developers is in dire need of extra 3D animation help; adding a 3D team for hire to your studio's assets could therefore increase profits.

  • Guiding your strategy. Once you have identified key opportunities, the business plan will help you pursue them effectively—and avoid distractions.

  • Establishing partnerships. A credible business plan will help you recruit key employees, secure publishing contracts, obtain a favorable lease, negotiate credit, and so forth.

  • Securing debt and equity financing. Since the safety of (and return on) their money is paramount to them, bankers and investors will base their funding decisions on the viability of the business plan.

  • Selling the company. Finally, if you ever want to sell your studio, a business plan showing a viable long-term strategy will be your most important asset, especially if the buyer is not intimately involved in the interactive entertainment industry himself.

Therefore, the business plan should be created before the studio's launch and updated on a regular basis (at least twice a year) as long as the company is in operation.




Secrets of the Game Business
Secrets of the Game Business (Game Development Series)
ISBN: 1584502827
EAN: 2147483647
Year: 2005
Pages: 275

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