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5 Steps For Starting Your Own Gaming Company


If you're just starting out, or an established player but thinking of going in different directions, here's why it's so hard to do things like start a gaming company. When I started my first games company we had five employees (including myself) and we made $1k USD. We hired a lawyer, got the legal documents signed, printed copies, and put them on our computers. At that point we couldn't just quit our jobs, because we didn't have a business bank account nor credit card. So we put the money in the bank and kept printing more and more paperwork until eventually it was all piled high enough that we could open a small gaming company. But then again, you need to decide if there is a market for your product, as most people don't know what kind of stuff can be found in their local mall, let alone want to get their hands on some video game titles like Madden NFL 21. Here are few tips from me to help you plan your own video gaming company.

1. Formulate a Goals and Objectives

Create a goal statement or business plan for your Video Games Company. You need to clearly define how much money you want to make, and what percentage of it your revenue will come from. What kind of products will you sell? How many consoles will you sell? Do you do any marketing strategies at all? Did you ever think about what marketing channels you’ll have to reach out to for exposure. And if no one knows how much they’re spending on new video games (especially those made in China), how can anyone know if they’ll be able to find their way back to the store to buy a copy? Just having a clear idea of these goals gives you a firm grasp on what kind of job you’ll want to see yourself doing. It makes sure you can hit those targets every day without burning through the cash on overtime or hiring outside professionals. Plus when you look over the financials for a game like Monster Hunter World you can see just where you stand within that target.

2. Create Ownership

Now that you can identify what you want to create, take ownership of that business by giving 100% of those equity to the person(s) who are currently working it. That means in its entirety the entire entity now belongs to you and that person(s). Put your name on all forms of corporate documents with each individual owner of the company, and sign your contract document (aka contract) with everyone at your head office. There’s nothing else you need to say. To create this legally binding contract, you’d send it via email, print it, seal it up, turn it over to the IRS, and mail it to both parties. Not only does this give you security of tenure for your future income, but also helps ensure the rights of someone new to an existing business is set up properly so they’re not at risk when the entity begins operating under someone else’s new name. This ensures the right person has the rights and power to run the business in ways the entity would like them to be able to. Now, if the entity is being operated as a sole proprietorship or LLC, everything falls apart, however, if you chose to use a partnership type structure and operate as a corporation (which is not required by law right now), all the owners of the entity have to agree with your decisions, thus creating a team of co-owners.

3. Open a State Tax Return

Now that you’ve created your personal company, register yours for taxes. Start filing regular tax statements and prepare them on paper work, rather than using electronic tax software like W-I-W. That way we can keep track of exactly how much we spent, and the amount of tax owed on any transactions in the recent past. Also, if your accountant decides to go broke for the year, when you send him/her a letter asking for extra money until next year, he/she will get paid. Lastly, make sure that you file all sales tax returns when a purchase occurs for goods and services. In addition, since we are collecting online payments for our customers, you can charge interest for payments made during the time you were offline from running your company until you receive the payment.

4. Create A Paycheck And Cash Flow Statement

Now when your potential customers can make purchases, create a paycheck and cash flow statement. The purpose of a paycheck and cost budget is to give a sense of what your overall finances are like and when you’ve paid off all of those expenses for the month. As a result, you can easily track where your cash goes and how much extra you have to bring in from other sources. Add in all sorts of expenditures such as advertising, social media, etc. in the monthly budget. These statements allow you to show other employees how much you’re actually making, based upon when and how much revenue you generate. They also become a great reference to show your other partners if you’re selling different types of products for your customers.

5. Send Sales Calls To Customers

If you’re really serious about building this company, start sending out calls to customers so you can follow up after closing deals on behalf of others. Don’t try anything too good too fast. Remember, there is a difference between trying something and getting your product done, even if it’s half the effort you put into the project and half into your sales call.

My gaming career was a wild ride in total change and growth, and I wouldn't hesitate to share with you just a little bit about the process I went through to do so. Thank you for reading my story! Maybe one day, one of my projects will become big enough to hire people who have helped me along the journey of success.

Good Luck! 😊

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