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Writing a business proposal for a game?

Started by October 17, 2003 10:00 AM
10 comments, last by chuawenching 20 years, 11 months ago
Hi there, I need some tips on writing a business idea for a game First Person Shooter. I know what game i want to implement, if if i talk too details about what my game have, there is no business value. How normally ppl like Dungeon Siege can tell their publishers that their games is original and something new from Diablo 2? I was giving an example, and i had no idea how does ppl can convince ppl/publishers to play/publish their games. I was to write a business plan for some technoentreprenuer in my country, Malaysia. But i think to develop a game in Malaysia, it is not worth it. Can i say in my business proposal (not business plan), that my target market is US? And if i develop a game with an existing 3D Engine, do you think Vecture Capitalist will allow me to do so? I just want to create a game. But i still had no idea what to write to maky my game unique. You know games like Half Life 2 and Doom 3, both have the same feature kill everyone you see. So what is so special? Except Half Life can work on lower end and high end machines and had good physics. Any tips? I need some cool tips to get me started please. Thank you. Oh ya i was suppose to hand in the business proposal as the dateline of the technoprenuer is finishing soon! So i can't wait to develop a game now. I don't want to miss the chance. Below is the format which i am going to follow: Executive Summary Goals and Objectives The Business Idea ------------------------ What is it about? Why is it special? // what is the uniqueness? What and whose need to be satisfied? Business model ---------------------- Key Technology Regards, Chua Wen Ching [edited by - chuawenching on October 17, 2003 11:10:14 AM] [edited by - chuawenching on October 17, 2003 11:12:57 AM]
Regards,Chua Wen Ching :p
as a matter of fact, dude, i am looking for similar information too. so if you happen to find anything interesting, i won''t mind if you share the wisdom with me ;-)
SACRED - a game of survivaltldstudios.com/gamedev/sacred
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I am still looking.

I wonder when i submit a business proposal, can i submit my game design docs together with it as an appendix?

You think those VC will reject me?

Thanks.
Regards,Chua Wen Ching :p
well, there is a document called the Proposal in game design where the Proposal is an actual description of the game and what not. Usually you write a game concept and after you write the proposal, I'm guessing you're already familiar in writing Business Proposal so writing a Game proposal shouldn't be too hard to do for you. I can give you a basic outline if you want.

I almost forgot the thing that atracts Publishers the most is the Introduction at the begining, that's where you show them that your product will make them money.


All that is necessary for the triumph of evil is that good men do nothing. -Edmund Burke

[edited by - Eric Poitras on October 17, 2003 1:53:23 PM]
All that is necessary for the triumph of evil is that good men do nothing. -Edmund Burke
> I need some tips on writing a business idea for a game

The IGDA publishes a **free** Game Submission Guide (http://www.igda.org/biz/submission_guide.php) to help you write such a document. It contains very up-to-date information for ''pitching'' your game ideas.

You might want to read this article from Francois-Dominic Laramee: http://www.gamedev.net/reference/articles/article273.asp. It is more production-oriented though, but it details game documents contents in a similar fashion.

If you can, grab a copy of "Secrets of the Game Business" edited by FDL, published by Charles River Media Inc in 2003; it contains very up-to-date information in running a game startup and pitching your game ideas to publishers and investors.

-cb
Yeah thanks a lot.

What makes me worried is will the Vecture Capitalist even look into my busines proposal on games?

Somemore i am in a country like Malaysia which games dev is less hope.

How do you all convince VC to believe that you product is good?

Even you had the best introduction, but when they heard it is a game, they will change impression!

I think normally VC looks for business products rather than games.

Any tips.

Thanks.

Regards,
Chua Wen Ching
Regards,Chua Wen Ching :p
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You are right, most investors want to invest in a business idea, not a single game/product. They expect their money to be used to expand the company quickly so that it can be floated on the stock market/sold off and they can get their money back (plus 500% profit).

Dan Marchant
Obscure Productions
Game Development & Design consultant
Dan Marchant - Business Development Consultant
www.obscure.co.uk
Yup exactly, you have to include a section in your proposal that explains the marketing behind your game, you have to PROVE that your type of game will give them all the money they invested and then some. Of course that''s the hardest part of all.

You can either check out some free marketing web sites on the web but they''re less acurate, if you want to check out some really good marketing done for you, you can go and check out a marketing firm but that''s if you have the money to spare, If not then just do a search on free marketing firms.


All that is necessary for the triumph of evil is that good men do nothing. -Edmund Burke
All that is necessary for the triumph of evil is that good men do nothing. -Edmund Burke
"How do you all convince VC to believe that you
product is good?"

VCs look at any investment for 1) management, 2) market opportunities and 3) products; and in that exact order. That''s also the order in which they can help a company grow and influence its decision-making process. It''s also in a decreasing order of risk; smart management teams are hard to come by and is usually the reason why a business fails. Products, OTOH, are mostly irrelevant unless they involve a technology that is very difficult to duplicate.

"But i still had no idea what to write to maky my game unique."

It might be unique in the way you play the game or how the environment is set up even if it''s based on shooting what''s in your gunsight. In EA''s Medal of Honor franchise, the sound atmosphere is fantastic and the storylines are based on actual WW2 missions. In Ubi''s upcoming XIII, rendering is done in a toon-like fashion and actions spur up text bubbles with things like "Blam!", "Aarrrgghh!" or "Kapow!", giving the game an interactive teenage superhero comic strip feel. HL2 and Doom3 are based on survival in a horror movie-style environment; HL2 will have more realistic physics where Doom3 will have more realistic lighting, yet both aim to convey horror and fear.
Avoid "Vulture Capitalists" like the plague! Flee into the night!

Actually, my experience with VCs hasn't been all bad. But it's always felt like dancing with the devil. ESPECIALLY if you are creating a new startup company with no existing revenue. What will happen is that the VCs will end up being the owners of the business, not you. And here's the kicker:

Venture Capitalists are *NOT* interested in the welfare of their buisnesses. They are NOT worried about what's best for the company or the employees. What they ARE interested in is their "exit strategy" - making the most amount of money from it in the shortest amount of time. What this usually amounts to is spending a bit of money "putting lipstick on the pig" to try and sell it to some other investor --- possibly the public in an IPO. During the dot-com boom, this often meant spending a ton of money on "showing off" rather than actually building up a solid business. But whether the money is well spent or poorly spent, the investors claim their pound of flesh in terms of their ownership of the company. They are often looking for a company with "explosive growth" potential --- usually meaning around 500% growth (and a 5x return on their investment) within 3-5 years. I don't know that this is such a good thing for the health of a game company. It seems that the faster they grow, the lower their efficiency and quality.

According to VC math, each dollar they put in is worth hundreds of man-hours of sweat, blood, and tears on the part of the people doing the actual work of the company. At least that's what they'd like to have you believe. They are experts at negotiation, and unless you can go head-to-head with them in that department, they will end up owning your soul, and then they'll turn around and sell it to the highest bidder.

To top it all off, I don't know of any confirmed reports of VCs taking a real interest in videogame companies. My advice is just to be very careful, and to explore *all* of your financing options, not just VC investment. In the end, they may turn out to be your best option, but it's best to go in with your eyes open. Besides, if you have no other options available, it puts you in a bad negotiating position.

[edited by - Jay Barnson on October 20, 2003 12:14:00 PM]

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