Gaming is a huge business and a lot of people are trying to get their share of the market. But creating your own game is not easy – not least because you need money to develop a good game. Finding financing for your business idea in the modern world, especially for game development, can be tricky.
The good news is that there are options out there for indie developers. If you don’t want to risk losing your home or getting in huge debt, here are five of the best ways to finance your game development business.
One of the most popular options for indie developers is to try and crowdfund their game. There are tons of sites like Kickstarter, Indiegogo and GameLaunched that allow you to present your ideas and seek the community’s help for getting those ideas materialised. Crowdfunding can offer you the route to raise anything from a few hundred to tens of thousands.
For crowdfunding to work, you need to have a good concept, present it in an appealing way and have something to show for your talent. Don’t just make a video outlining your idea but show why, how and when you can do it to a high-quality standard.
2. Investors – including angel investing and equity investing
You can also target the more professional investors. This is essentially similar to crowdfunding in that you need to present your ideas and plans in a comprehensive way to get people interested. However, you will be able to attract higher sums of money from a single investor or investment entity. The drawback is that you must give out a piece of the company to the investor.
You can either seek angel investors, who are wealthy individuals that invest in start-ups, or opt for equity investors, such as private equity companies and venture capitalists. Both have their pros and cons so it’s important to do your research first.
The business world is crazy about bootstrapping and it’s often the go-to method for start-ups. Bootstrapping is about launching a business with minimum investment from outside – you launch the product in small, lean versions and continue to refine it while using the money you obtain to develop things further.
The process is rather tricky and it’s not always a viable option – especially for game developers. Nonetheless, it is worth keeping in mind if you don’t like the idea of lending or getting investors involved.
4. Payday loans from direct lenders
If you’re not looking for a huge amount of finance but can manage with a few thousand, payday loans uk can be a good option. You can find payday loans online and getting access to this type of funding doesn’t take a lengthy background check.
Payday loans with direct lenders work if you have some cash flow coming and you can pay back your loan according to the repayment plan. It’s a great additional financing tool for the unexpected expenses and for those moments when you just need a little money to finish a project.
5. Lending from friends and family
Another option for smaller financing needs is to seek money from friends and family. You can often just ask for money without even giving away equity in your indie business. Even if you give out equity, it’s easier to do it with smaller chunks and more favourable terms.
What’s important to remember when lending from friends and family is that they could lose the money and it might make things awkward. It’s not always the best idea, as money can strain the relationship. It all depends on your relationship so do keep the option in mind.
Financing your game development business is not impossible, even when you don’t have a lot to show for it yet. It will take careful planning and you should always consider a few of the financing options before you pick the one for you.
So, craft your business plan and develop your game idea further. Check which financing options are suitable for your plans and get your game development started in style.