Author: Luke Thomas, Director, Plus Accounting
Ukie member Plus Accounting has written this article as part of their Gaming Blog Series.
Before you start your own indie games studio there are a number of key issues you should consider that will help ensure you are successful with your new venture.
Have a great idea for a game!
Spend your time carefully thinking through your idea to ensure it will be saleable and feasible. Be careful not to underestimate the size of the development you have planned. Consider the time you will have to invest in creating your game.
Choose the appropriate legal structure
Generally this is a choice between trading as self-employed or forming a Limited Company.
Self-employment is low cost and the quickest way to start a business. You can also incorporate later if you are more certain of success and would like the benefits that trading through a company can offer. There is also the low cost, simple way to exit, if the business does not go to plan.
Forming and trading through a Limited company comes at a higher price, but can offer significant benefits, including tax efficiency, increased chances of outside investment and access to reliefs such as Research & Development and Video Games Tax Relief.
Prepare a Business Plan
There are a number of free templates available to download on the internet. Your Business Plan is a great way to focus your mind on what you are planning to do, your timelines, financial requirements, forecasts and market research. It will also help support your application for funding (whether bank loan, publisher funding or equity investment).
Talk to the professionals
There are solicitors, accountants and finance providers experienced in the video games sector that can offer you invaluable, low-cost support at the start of your venture. This will enable you to make the right decisions at the outset and ensure you avoid costly mistakes.