Home » Business, Headline

Is Your Gaming Business Idea Worth A Potential Fortune?

2 April 2018 No Comment

Behind the success of every business mogul is an idea that passed the market test and now satisfies a need within the market. Niche businesses are notorious for making huge profits. A focus in the gaming industry reveals $116 billion dollars in revenue made in 2017. So just how can you leverage the 2.2 billion active players on the mobile gaming industry, or at least a percentage of those, to net you a fortune?

Do it yourself

No matter how glamorous that money-making idea seems in your mind, don’t let it blind you from the investment required and possible risks. Implementing your business idea on your own requires you to master the financial, marketing and legislative aspects of a business. Hard as it may be, it is possible. Justin Kan created Twitch, an online platform for live video game streaming in 2011. The site was acquired by Amazon for $970 million in 2014. Dooma Wendschuh and Corey May started out as indie developers and co-founded Sekretagent Productions in 2001. Now, Sekretagent Productions boasts of popular videos games like Assassin’s Creed, Prince of Persia and Batman: Arkham Origins. Meanwhile, gamer Daniel Middleton, popularly known as DanDTM, has mastered the art of combing Youtube and gaming to make a fortune. Forbes named him the highest paid Youtuber of 2017 with a $16.5 million income.

Follow their lead

There are lots of big-name entrepreneurs that believed in their idea who worked on it and are now reaping the profits of their labor. One thing is certain though, you need to find your niche, stick with it and strive to stay ahead of the competition. Find out what your consumers want and deliver or surpass the expectation. Most importantly, be ready for setbacks. No matter how tough the competition or the market gets, keep in mind that perseverance is a strategy.

If you can’t beat them, join them 

It’s no secret that AAA publishers, such as Electronic Arts and Nintendo, are responsible for generating a huge chunk of the gaming industry’s revenue. They combine video game development with other aspects such as accounting, branding, marketing, distribution and legal services necessary for the success of a video game. It is, therefore, only logical to set your sights on a successful company to help you actualize your gaming idea.

In order for your business idea to attract the attention of an established company, you have one of two options: become the company’s employee or work on your idea, monetize it and eventually land a big investor or client. However, just because the odds are low doesn’t mean you should give up before you even start. In fact, studies show that gaming entrepreneurs tend to take more risks when business is not doing well.

Pitch your idea

Indie developers have less to lose and leverage this to develop unorthodox games, to the delight of gamers. On the other hand, a bigwig like EA continues to clutch onto its Fifa series since 1993. So do not be afraid of doing the unexpected. Investors are always interested in successful innovations in any business niche.

You may be generating six-figure revenues but if you can’t woo investors, your growth rate will remain stunted or slow at best. A reputable investor will not just finance your business idea, they will earn you the exposure required to popularize your venture.

Know when to walk away

Every business goes through five stages: seed and development, start-up, growth and establishment, expansion and finally, maturity and possible exit. Making the right decision at each stage is essential for the growth or survival of your business. It is easy to navigate all the first four steps and miss the last one. A good entrepreneur needs to acknowledge when they have exhausted their potential in expanding the business. This varies from one person to the other.

There are products that make incredible sales upon entry to the market and the proprietor prefers to sell the firm right after start-up. At this point, a sale is the best option. For Palmer Lucky, that partial exit came to the tune of billions when Facebook acquired Oculus VR at $3 billion. It is upon you to decide between partial or wholesale.

The business world has refused to make room for dormancy. No matter the industry you pick, innovation is at the root of every successful business today. The best part is that the growth of start-ups into conglomerates creates room for niche businesses to thrive. The gaming world, like any other fast-growing industry, continues to harbor several overlooked consumers. That right there is your opportunity to turn your money-making idea into a Fortune 500 company.

Comments are closed.