Starting your own indie game studio will undoubtedly expand your understanding in ways you haven’t imagined. But before we delve into the details of establishing a studio, let’s clarify a few things. What exactly is an indie game studio? Well, if you’re creating games with the goal of making money, technically, you’ve already established an indie game studio. You see, the term “studio” carries both a literal definition and a more commonly understood connotation.
The literal definition of an indie studio encompasses any individual or team engaged in creating indie games with the intention of making money. For instance, even if you’re a person developing iOS games in your parents’ basement, you can still be considered a studio.
Indie studio
However, the more widely accepted formal meaning of an indie studio involves assembling a team of individuals who often work together in a physical space. This arrangement may involve investment or an equity agreement to handle profit distribution. When using the term “studio,” it implies a professional approach to game development, pursuing it as a full-time endeavor or dedicating all available free time to it.
Now, let’s get real. If you haven’t previously created and commercially released a game, you are NOT prepared to launch an indie studio. We say this with tough love because it’s important to have practical experience before venturing into the studio realm.
Absolutely, you possess the necessary skills and are capable of teaming up with friends to create games.
Review your answers
I’m a fan of checklists, so here’s a handy one to determine if you’re truly ready to establish a formal indie game studio. If you can answer “yes” to all of these questions, then you’re prepared:
- Have you previously developed and commercially released a game? Even a small mobile game you created independently counts, as long as it was actually launched.
- Do you possess a tangible skill related to game development, such as design, programming, or art? In other words, don’t attempt to start a game studio if you don’t have a specific contribution to the actual game-making process.
- Do you have a clear vision for the first game you want to create? Have you conducted research on the concept, designed its core features, and obtained ample feedback from your target audience?
- Do you have enough funds (or a stable day job) to sustain yourself for at least six months without income from your game studio?
- Do you have enough financial resources to pay contractors or employees who can handle aspects of the game that you yourself lack the skills to create (e.g., artwork if you’re not an artist)?
- Have you developed a detailed business plan? It doesn’t need to be extensive; even a one-page business plan will suffice.
- Are you prepared and willing to allocate 25% to 50% of your time to marketing, community development, or app store optimization? Alternatively, do you have a founding partner who can handle these responsibilities?
- Are you mentally prepared to face failure, yet also committed to working diligently every day for months without giving up?
By satisfying these criteria, you’ll be better equipped to embark on your indie game studio journey.
Do you really need to establish a formal indie game studio? Most likely, the answer is no.
Our suggestions
Simply start developing your game. You don’t need to register a business, seek investment, incorporate, print business cards, or create a logo. Just focus on the act of making your game. Of course, give yourself or your team a “studio” name for the necessary fields when submitting your game to the App Store or other platforms where you’ll sell it, but keep it at that.
Only consider formalizing your studio when one of three scenarios is imminent:
- You are on the verge of making a substantial amount of money.
- You are about to secure significant investment funds.
- You need to appear formalized and professional to attract partners or investors, and you either have promising leads or are willing to invest substantial time in finding them.
In these situations, it would be appropriate to take the steps to formalize your studio. Until then, focus on developing and creating without getting caught up in unnecessary formalities.
Just try to start
If you don’t fall into the aforementioned scenarios, my advice is to simply start making your game without worrying about the “studio” aspect. Getting caught up in formalities will only consume valuable time and energy, diverting your focus away from actually creating the game. It’s crucial to prioritize finishing your game above all else, as many people fail simply because they never complete their projects. Therefore, focus on game development first and the “studio” stuff second.
Now, we understand that you may be thinking, “What if my game requires a large team, substantial funding, and a formal studio to succeed?”
What do you need to establish indie game
- Define your vision: Clearly articulate your game’s concept, target audience, and goals.
- Gather your team: Assemble a team of individuals who possess the skills necessary to bring your game to life. Ensure everyone is aligned with your vision and committed to the project.
- Legal considerations: Consult with a lawyer experienced in business and intellectual property law to determine the appropriate legal structure for your studio. This may involve registering your business, creating contracts, and establishing ownership agreements.
- Financing: Determine how you will fund your studio and game development. This may include seeking investments, securing loans, applying for grants, or exploring crowdfunding options.
- Business plan: Develop a comprehensive business plan that outlines your studio’s objectives, strategies, target market, financial projections, and marketing approach. This document will serve as a roadmap for your studio’s future.
- Branding and marketing: Create a compelling brand identity for your studio, including a logo and website. Develop a marketing strategy to promote your game and engage with your target audience.
- Operations and production: Establish efficient workflows, communication channels, and project management systems to ensure smooth development and production processes.
- Launch and distribution: Determine the platforms and distribution channels for your game. Develop a launch strategy and plan for ongoing updates and support.
Remember, formalizing your studio should only be pursued if it aligns with your specific needs and goals. The most important aspect is to focus on the completion of your game before diving into the formalities of establishing a studio.
Follow these steps
Choose a name for your studio. Conduct a Google search to ensure no one else is already using the name.
- Secure a website URL that closely matches the name, although don’t stress too much about having the perfect URL. The game you create is far more important than the URL. Register your company: Research the specific process for registering your studio with the relevant government authorities in your area. Note that registration is different from incorporation. It’s advisable to delay incorporation until necessary. Research the concept of “liability protection” associated with incorporation in your country to fully understand its implications.
- Develop a clear business plan: Focus on answering key categories rather than worrying about format or length.
- Hold off on business cards, logos, and corporate websites until necessary. Prioritize game development over these formalities.
- If you have a physical location, find an office space for your team. Minimize costs and plan for 50% expansion rather than 200%. Only purchase the necessary equipment, and consider acquiring second-hand items.
- If working remotely, evaluate the software your team already has and minimize new purchases.
- Create agreements that define roles, ownership, decision-making authority, and responsibilities among team members, investors, and partners. In the early stages, you can use standard templates or draft the agreements without a lawyer.
- Seek legal counsel when investment is involved. Utilize project management tools like Pivotal Tracker and communication platforms like Slack.
- Establish clear project management processes and define the roles and responsibilities of each team member.
Use platforms like Elance to find contractors if needed.
Final Thoughts
Embarking on the journey of starting an indie game studio can be challenging, but it also offers immense rewards and opportunities for personal and professional growth. It’s important to set realistic expectations, especially when it comes to making money from your first game. Don’t spend too much time perfecting your initial game; use it as a learning experience and iterate quickly.
FAQ:
How much money do you need to start an indie game studio?
The amount of money required to start an indie game studio can vary greatly depending on various factors such as the scope of your projects, team size, equipment needs, marketing budget, and location. Some indie game studios start with minimal budgets, utilizing existing resources and focusing on low-cost or free development tools.
How profitable is indie game development?
The profitability of indie game development can also vary widely. Success largely depends on factors such as the quality of the game, marketing efforts, target audience, timing, and overall market reception. It is crucial to approach indie game development with a realistic understanding that financial success is not guaranteed, and it requires diligent planning, creativity, and perseverance to achieve profitability.
How much does it cost to start a video game studio?
The cost to start a video game studio can range from modest to substantial amounts, depending on the scale and ambitions of the studio. It is essential to assess your specific needs, consider both one-time startup costs and ongoing expenses, and create a realistic budget accordingly.
Do indie game developers need a business license?
In some jurisdictions, operating a business, even as a sole proprietorship or partnership, may require obtaining a business license or permits. It is advisable to research and comply with the legal and regulatory requirements in your specific location. Consulting with a local business advisor or attorney can provide further clarity on the licensing obligations for indie game developers in your area.