View Full Version : Business Plans & Resources
Ruandre
13-05-2009, 09:28 AM
I found some helpful resources for people that want to start their own small game development studio or something. Well, I hope it's useful to someone.
http://www.score.org/
Small Business Basics (Sony) .pdf (http://www.score.org/pdf/BusBasics031609.pdf)
Template:
http://i113.photobucket.com/albums/n239/skullhozer/GameBusinessPlan.png (http://www.bplans.com/sample_business_plans.cfm)
If anyone else has info on how to start your own business in South Africa, I'm sure it would be greatly appreciated.
dislekcia
13-05-2009, 12:00 PM
Nice find indeed! Now to integrate that into my own working business plan.
I'm in the process of looking for funding for QCF, so this is perfect :)
Tenebrious
13-05-2009, 12:32 PM
thanks for that, excellent post!
dislekcia (if you can share) how are you going about securing funding ?
a partner and i are preparing to take the leap into starting up a game studio(after having been accepted into an incubator program and winning imagine cup SA) and would like to hear the thoughts of those in similar positions ?
thanks
Ruandre
13-05-2009, 01:57 PM
Moar:
http://www.sba.gov/smallbusinessplanner/index.html
Tips from the Loan Officer?s Side of the Desk
by Ed Harycki
If you?re in the market for a small business loan right now, you?re likely finding more closed bank vaults than usual. Many long-term lenders are overwhelmed and distracted with their deteriorating consumer portfolios and are either unable or unwilling to open their doors to small business customers.
But there is money available. Here are some tips that will help you navigate the application process when applying for a loan to obtain the needed financing to grow your business.
1. Some lenders make all of their loan decisions based on an electronic scoring system. You earn ?points? for certain behaviors and criteria. Look for a bank that also does judgmental lending, where a real person reviews your applications and speaks to you either in person or over the phone instead of solely using a computer program to make decisions. You?re more likely to get the rate and credit line you want.
2. Communicate what you expect upfront so the lender understands the amount and term of the loan you desire and does not provide you with financing that does not meet your needs.
3. Many third-party agencies, such as loan brokers and consultants, charge excessive finder?s fees for searching for small business loans. Consider working directly with a financial institution instead of using a broker or consultant to find you the loan you need.
4. Don?t use your personal credit for your small business. Most banks will look at statements from both your personal and business credit histories to make a decision, but you should make sure your bank is willing to keep your business and personal credit separate by not reporting business loans to your personal credit report if you remain in good standing. It can affect the rate you pay and your ability to take out a personal loan and refinance your house and the like.
5. Make sure to report all household income, including any income from your spouse or from sources other than your business. This includes income from investments and rental properties. Lenders want to ensure you can meet all of your financial obligations. Because they will include all of your personal and business debt in debt-to-income and debt-service calculations, you need to make sure all of the income actually servicing that debt is taken into consideration or else you may end up paying a higher rate or not be approved at all.
6. If your personal credit has a minor blemish, ask to talk to the lender or offer to provide an explanation in writing so you can put some context around the situation.
7. If the total amount of revolving debt, such as credit cards, home equity loans, lines of credit, and so on, in your personal credit file exceeds 25 percent of your annual income, be prepared to explain what it was used for and how you plan to pay down or pay off the balances. A lender is less likely to approve a loan for an applicant who couldn?t say no to a sale and has no plan to pay down debt vs. an applicant who spent $25,000 to buy new computers for a business and plans to have the debt paid off in three months. Remember, revolving credit, regardless of the type of loan, is meant to be used as a short-term financing tool.
http://www.allbusiness.com/
The Power of a Good Business Plan
by Richard Morochove
Not every business can get away with something as simple as the initial business plan for Compaq Computer. It was a sketch of a portable personal computer, scratched on the back of a placemat from House of Pies Restaurant and Bakery in Houston.
This valuable placemat is ensconced in a glass case in Compaq?s headquarters. That placemat was enough to persuade venture capitalist Ben Rosen to invest in the budding business proposed by three engineers, a business that turned into the fastest-growing startup ever founded up to that time.
But that is very much the exception. Don?t count on your back-of-the-envelope jottings to provide sufficient justification to persuade your unfriendly local loan officer to approve that six-figure line of credit for your business. No, you must develop a workable business model for your startup or a plausible plan for the major expansion of your existing business.
Like all business plans, yours needs to answer the key questions about the purpose of your business: What will it do, and how will it earn money doing it, on a sustainable basis?
Small businesses in general are more susceptible to business failure caused by inadequate business planning. There is less leeway for financial missteps. A million dollar boondoggle that causes a quarterly profit dip in a large enterprise can cripple a small business.
You may not have a choice about whether to develop a business plan. Most businesses are required by their source of financing to create one. Before a bank will advance a loan, it wants to know how the money will be used and how it will be repaid. Before your board of directors or your division chief approves your annual budget, especially with that big new investment you'd like to see them make, they want a convincing rationale explaining how the risk of this investment will generate rewarding profits and when.
Financials are an important part of every business plan. But it?s not the only component, nor even the most important. Before you can intelligently talk about finances, you must create a business model, which is the economic rationale for the existence of the business.
Writing your business plan helps refine your thinking, and that may be its greatest value to you. When you first set down your plan, it may look great. But in the cold light of the following day, you may realize it has some holes or requires additional explanation.
Do you need a business plan even if you don?t require financing? A loan officer is like a friend who will lend you an umbrella, as long as it?s not raining. When you have a desperate need for financing, a bank has you over the proverbial barrel. Don?t count on getting a good deal for financing when you desperately need the money.
So the best time to prepare the financial component of a business plan is when you don?t need money.
Say what?
If your plan shows that your financial requirements are modest and could in all probability be self-financed, that just whets a banker?s financial appetite. You?ll look like a good client to sign up for a line of financing because it appears as though your business will have no problems paying back any money borrowed. Bankers like low risk. A well-thought-out business plan lets you show how you will manage risk, which is the thing bankers like second best.
http://www.allbusiness.com/
How Do Business Plans for Home-Based Businesses Differ?
Every business should have a business plan, including a home-based business. The growth of technology and telecommunications has allowed the home-based business to be considered a much more accepted part of the modern business world. No longer is such a business viewed as a sideline or a hobby. Many highly successful businesses began in someone's home office, on the kitchen table, or in the garage. Generally, a business plan for a home-based business should not differ greatly from any other business plan, with a few exceptions.
There are some areas that you may want to give special consideration. In your discussion of marketing and promotion, for example, you may want to focus more closely on your plans to use technology to promote and sell your product and services to consumers. Likewise, the business operations section should illustrate that the home environment will not detract from the business in any manner, and may, in fact, be beneficial for specific reasons, such as lower overhead and startup costs.
Depending on the nature of your business, you may require greater detail in some areas of your business plan. For example, in managing a wedding-planning business from your home, you should explain your plans for meetings with clients. However, if you are running a business that requires an extensive inventory, you should outline inventory management plans and your strategies for security and shipping.
Other details that may be included in the business plan or asked about by investors might pertain to your technical capabilities or your compliance with zoning laws and the legality of running such a business in a residential area. Address these concerns in your plan or be prepared with answers. If you are planning to grow from the home base into an office in a predetermined period of time, you should indicate that as part of your future plans.
http://www.allbusiness.com/
dislekcia
13-05-2009, 02:02 PM
thanks for that, excellent post!
dislekcia (if you can share) how are you going about securing funding ?
a partner and i are preparing to take the leap into starting up a game studio(after having been accepted into an incubator program and winning imagine cup SA) and would like to hear the thoughts of those in similar positions ?
thanks
Last year I produced a brief overview of the games industry locally and how game businesses work in general for Deloitte, that evolved into a working business plan for my own company - been paying my bills since 2007 - to move out of project-based work into building our own products. To do that, we need funding so that we don't have to worry about eating and rent while we're developing ;)
After last years top 20 result in DreamBuildPlay, we've got a lineup of games that have good market potential and a track record of completing games. What we still need to establish is the sales and marketing expertise that will differentiate us, but we're working on that.
Essentially we've proved that we can make games for clients, now we want to take the next step and go full-on indie. My advice if you're looking to start a game company is pretty simple: Finish a game first, no matter how small (unfortunately I can't check your Imagine cup entry, the site's being horridly slow - was it a game though? I've been called in before as a Firefly judge when they had distinct games as projects) and then do your market research. Find out if there are people out there that will buy your game and then find out how to get it to them. If you need to be published on the Wii to sell, find out how to do that. If you need to have Popcap behind you, find out how to do that... Don't assume anything, always have concrete numbers and research. You need to convince people to back you, they won't do that if you're simply saying "Well, we think this will sell well because we built it" that's not compelling ;)
But yeah, the business side of games is tricky and takes a very different tack to simply building the things.
Ruandre
13-05-2009, 02:26 PM
Funding Info...
Looking at Your Options for Business Funding
One of the critical aspects of opening a new business or expanding an established one is finding appropriate business funding. You have a few options for acquiring the necessary startup capital, each with its own particular set of nuances that may or may not coincide with your business model.
Determining the size and scope of your business is key when approaching potential lenders, as they may require you to provide an exact plan on how you intend to repay the debt.
Primary Types of Business Funding:
When looking for business funding, you have three primary sources at your disposal. And because the process of acquisition can be involved, having your "numbers" in order should help you streamline the process.
Small business loans: This is probably the most common way to fund a new business startup. Small business loans can derive from numerous sources, such as banks, credit unions, the U.S. Small Business Association, or angel investors. With this business funding type, potential sources look at the business plan, personal credit history, and several other factors.
Merchant cash advance: This differs from small business loans because your advance is based on potential credit card sales. A merchant advance is ideal for small and mid-size businesses that find it difficult to get business loans or venture capital from banks or leasing companies. This type of funding almost always requires a credit card processing agreement with the funding merchant.
Unsecured business loans: Unsecured loans are monetary loans that are not secured against the borrowers assets. These may be available from financial institutions under many different service packages, including credit card debt, personal loans, bank overdrafts, credit facilities or lines of credit, and corporate bonds. The interest rates on unsecured business loans can be in the double digits for those with less than perfect credit or no credit history at all.
Choosing a Funding Type:
Before going into negotiations for a small business loan, a merchant cash advance, or an unsecured business loan, make sure you know exactly how much funding is needed and how that funding will be spent. Here are some things to consider when applying:
How much money do I need? For a small business startup, determining the startup capital estimate should be addressed in your strategic business plan. Accuracy is important, so be sure to list any and all expenses you anticipate facing in the opening months of operation.
How will I spend the money? When asking for business funding, many lenders will ask you to outline in detail how every dollar you request will be used. A small business loan is often needed for operations (new employees, marketing, etc.), assets (equipment, real estate, etc.), or to pay off current business debts.
When will I repay my small business loan? You will explain in detail how this small business loan will serve as the catalyst for business operations. Use financial statements and cash flow projections to convince the lender that the loan will be repaid through the expected long-term profitability of the business.
If the loan is denied, what is my next move? Portraying a confident and determined attitude can let lenders know that rejection will not discourage you from starting or growing your business. Chances are that your application won't be successful in your first attempt. Therefore, try to access all possible avenues of business funding to increase chances of success.
http://www.allbusiness.com/
Five Things You Can Do to Increase Your Chances of Getting a Business Loan
There are a number of things you can do to improve your chances of securing a bank loan. Here are five of the most important:
1. Have a sound business plan. Having a solid business plan is your best shot at getting a loan. But it also must be a complete and well-presented plan. It's especially important to polish your executive summary. This one- to three-page summary of your business is what bankers look at first ? if they like what they see, they might read on.
2. Invest your own money. Another way to improve your chances of getting a loan is to put some of your own money on the line. Lenders typically like to see that owners have at least a 25 percent equity stake in the businesses they finance.
3. Rent, don't buy. Bankers also favor businesses that plan to rent rather than purchase a building. That's because lenders prefer that you invest in assets that generate income, like inventory and equipment. Bankers also frown on high renovation costs.
4. Check out your credit report. Reviewing your own credit report before you start the application process can also put you ahead of the game. Lenders use your personal credit history to help them decide whether you're a good risk for a loan, so it pays to know what they'll find. If your report shows a mistake, contact the credit reporting agency and demand a correction. If your credit report shows legitimate late payments or bankruptcies, you should include a letter with your application explaining the circumstances and how they've changed. This can soften the impact of these black marks against you. Always be honest about your credit history ? covering up problems is the fastest way to get shown the door.
5. Explore local banks. Don't assume the bigger the bank, the better your chances of getting a loan. Smaller community banks might be more inclined to finance businesses in their areas, and their loan officers are more likely to give you individual attention.
http://www.allbusiness.com/
Top 10 Mistakes Made When Applying for a Business Loan
Whether you're applying for a business loan or a personal loan, there are common mistakes that can hinder the process. Below are 10 of the most common mistakes made when applying for a loan.
1. Not knowing your credit rating. Before you apply for a loan, you need to know where you stand. Get copies of your credit scores from the three major credit bureaus so you will know if you're likely to get the loan approved.
2. Not reading the terms carefully before signing. In your haste to get a loan, you may commit the common mistake of jumping the gun and signing without reading the details and terms of the loan. Not only should you take the time to read everything very carefully, but you should also ask questions about anything you do not fully understand.
3. Not locking in a rate. Interest rates change. If you think you've found a good rate, lock it in before it goes up. Too often, people make the mistake of getting greedy and waiting for interest rates to drop farther.
4. Not explaining what the loan is for. When applying for a business loan, you need to indicate how the money will be used. Lenders want to see that you know exactly what your needs are and how this loan will meet those needs.
5. Making major changes. Just as you do not want to open and close various credit cards before applying for a personal loan, you do not want to make significant personnel or other changes to your ongoing business structure before applying for a business loan. Lenders want to be able to see stability in how you do business and with whom.
6. Applying only to the most convenient lender. Although there are various lenders available, many people still head to their local bank first without shopping around. Credit unions and other sources are worth investigating. For example, if you are a small business owner, you should consider what the Small Business Administration can do through one of their loan programs.
7. Not having your finances up-to-date. Whether you are seeking a personal or business loan, you shouldn't apply without having the proper financial documentation. This is an area where many people put the cart before the horse, and try to get a loan without making sure their financials are up-to-date.
8. Failing to have some equity in the project. Not unlike a down payment when buying a home, having some equity in a business project significantly enhances your chances of securing a business loan. If you're not invested in the project, or in the business itself, the lender will be less enthusiastic about taking on such a risk.
9. Having no collateral. You need to provide some collateral, should there be a default in payment.
10. Not having a business plan. If you're starting a business, you need to demonstrate how the business will operate and make money. A business plan is essential for a lender to see your goals and specifically, how you intend to reach them. You must include all applicable supporting data, including financials.
http://www.allbusiness.com/
Tenebrious
13-05-2009, 02:47 PM
its was a game as much as any bog standard racing game is...it really was more to learn how to make a 3d xna based game (word of caution - i'm the artist :) ). we're also the only SA team that made it through to the 2nd round of the international imagine cup running at the moment...deadline 20 of may....:)
when you started working for clients, how did you go about that ?how did you source them or did you have the contacts already and just formalised the working arrangements? local or intenational ?
is it a big secret how deloitte went about setting up the plans ?
we are currently working on the business plan with seda and and ICT incubator here in PE. so a bit detached from the whole "scene" as it were, but hope to be joining you guys for rage this year...show of some shiny stuff
xyber
13-05-2009, 03:32 PM
Essentially we've proved that we can make games for clients, now we want to take the next step and go full-on indie.
Great to hear, hope all goes well.
Ruandre
26-01-2010, 07:25 PM
*casts resurrection spell*
I'm in the process of looking for funding for QCF, so this is perfect :)Try http://www.kickstarter.com/
dislekcia
26-01-2010, 08:06 PM
*casts resurrection spell*
Try http://www.kickstarter.com/
I'd been looking at kickstarter for quite a while, thankfully we did a project late last year that's given us a sound base to build this year's game on. We're officially self-funded as of last month, even though we've still got the odd client project coming in. Can't say I'm complaining ;)
Ta for the link tho, anyone got a project they're thinking of kickstarting?
Etiko
27-01-2010, 10:22 AM
Kickstarter won't work for us ZA people, sadly:
Do I have to be US-based to start a project?
Currently, yes. Kickstarter's transactions are handled by Amazon Payments, which restricts the ability to receive money to people or entities with a US bank account and a US address.
Kickstarter will allow international project creators in the future.
Remember that people can pledge to projects from anywhere; it's only project creation that's restricted.
Ruandre
27-01-2010, 10:13 PM
Kickstarter won't work for us ZA people, sadly:That sucks. I think a lot of local people would've pitched in some cash to help out :/
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