Over the last decade, the gaming business has changed drastically thanks to technological innovations and the increasing popularity of smartphones. In fact, the gaming industry is growing so fast that some market experts believe it will reach over $300 billion by 2025. Whether you’re a gaming enthusiast looking to turn your passion into a career or a prospective entrepreneur searching for a new business idea, the gaming industry has endless potential—from mobile apps and video games to new technology like cloud gaming and virtual reality.
To start a gaming business, you’ll need to combine business expertise with gaming knowledge. If done right, launching your own gaming business can be an extremely rewarding—and profitable—experience. So, what’s the best way to start your own gaming company?
Highlight your business goals and plans.
Before launching your company, create a business plan that highlights your business goals and long-term plans. Make your business plan as detailed as possible, with information on what type of games you’re planning to offer and whether you’re planning to operate online or in a brick-and-mortar store. Next, calculate the costs involved in creating a gaming company—such as purchasing initial inventory, obtaining licenses and permits, and investing in a gaming server to operate.
When you’re finished creating your business plan, it’s time to take action. Objectives and key results (OKR’s) software help business owners define and achieve their best possible outcomes. By providing a quarterly process for companies to articulate and align business goals, OKR software focuses on measurable outcomes and provides a platform to help teams stay on track. Using retro data to measure results, OKR’s can help you track growth, development, and customer experience across your entire organization.
Obtain all necessary permits and licenses.
Next, you’ll need to research state and federal laws. To get started, obtain a state tax license from your state’s department of revenue and apply for an Employer Identification Number with the Internal Revenue Service. Additionally, after deciding on a name for your business, be sure to formally register your business name with your state’s secretary of state office.
You’ll also need to obtain certain permits and licenses before launching your company. Registering for the appropriate trademarks and copyrights is imperative to protect your rights, especially if you’re planning to develop a unique gaming product, concept, design, or brand.
Invest in a dedicated gaming server.
After you’ve completed all of the necessary legal formalities, it’s time to choose a dedicated gaming server. Your customers will use your gaming server to play games and interact with your company, so it’s important to take the time to choose the best dedicated game server hosting.
When conducting research on gaming servers, make sure to prioritize reliability, bandwidth, high-quality processing, and DDoS protection. Choosing a game server with at least 1Gbps of bandwidth will ensure you’re able to process traffic without compromising service availability. If you’re planning to build a high-volume company, opt for a game server with data centers based around the globe. Renting serves closest to where your gamers are based is the best way to ensure optimal performance and low latency at an affordable price.
Use digital marketing to grow your business.
Growing your gaming business is a complicated endeavor. It’s not enough to create the best online game—you’ll also need to implement powerful digital marketing strategies, build your web presence, and reach out to influencers in the gaming industry.
Ultimately, your digital marketing and promotional strategies will depend on the type of game you’re trying to sell. To connect with prospective gamers and customers, use social networking platforms—like Twitter, Instagram, and Facebook—to your advantage. To drive more traffic to your website and build your reputation in the gaming industry, consider reaching out to popular gamers on YouTube and Twitch for collaborations.
After finding the perfect business idea, you’ll need to take the right steps to turn your passion into a profitable business. Above all else, the key to launching a successful gaming company is to create a hit game and build a fanbase that generates momentum and interest in future titles.