In 2021, global PC gaming market sales were $45.5 billion—and the numbers are set to increase to a whopping $196 billion by 2022. To claim a share of those sales, you need to start a successful gaming company. The gaming industry is a booming and lucrative one. So, if you start a gaming company today, you’ll experience massive success–so long as your games are good.
Gaming is no longer synonymous with computers. People now enjoy high-level gaming experiences on their smartphones, TV sets, tablets, and other handheld devices. But, how exactly do you start a successful gaming company?
Write a Business Plan
To map a clear path for your video gaming business, write a business plan. A business with a clear plan has a 70% chance of scaling its growth in the future. Before writing a plan, consider the costs involved in opening a video gaming company. You require a facility, insurance, employees, video game consoles, sets of computers, and monitors.
In other words, running a video gaming company is expensive. You’ll spend a lot of money on equipment and developers. To save money, launch your gaming business at home initially then start building games.
You can apply for a short-term loan and purchase the machines you need. Most have a fixed monthly payment and no prepayment penalties. Search online using the term “loans near me” or “best startup loans” to secure a quick loan.
Find a Business Name
Once you have a clear plan, choose the right name for your business. This is perhaps the most challenging stage of starting a video gaming company. If you don’t have a business name in mind, brainstorm a name using different online guides—or ask your friends and family to help you choose a name for your business.
It can be tempting to use your name as a business name, especially if you run a sole proprietorship, but don’t take that route. Almost 72% of the best brand names are made up of acronyms and words, so be creative and register a name that’s easy to recall.
For inspiration, check out:
- Social media platforms
- Federal and State trademark records
- Business records within your state
Once you come up with a business name, pay for the domain before someone else jumps on the idea and creates a website using the name.
Register for Taxes
Before you think of opening your gaming company, register for taxes. This is a crucial step, so don’t skip it. The taxes you’ll register for will depend on your location. Different states have different tax and federal rules. So, be sure to check with your state on how to apply and register for taxes.
No matter the state, you must have an employer identification number (EIN) to register for taxes. Applying for an EIN is easy and is done on the Internal Revenue Service (IRS) website.
How much you’ll be taxed will depend on your business structure. Will your business be a sole proprietorship, Limited liability Company (LLC), or a partnership? There are different taxes for every business structure.