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Bearrick92

Business plan help (projections)

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OK Been working on my business plan for awhile (short form) Anyway i wasnt going to ask for a loan, but space just opened up for us to build a studio, which means i wont need much (i may just ask for 1-2k) but i'm wondering how to do the revenues part. cause i'm not sure how much we would make in a year or how to add that up. Most of our games will be $10-20 with our 4 year project being either 20-40 though. in 2011 we plan to take another project to the IGF.

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To do any kind of revenue projections the best place to start is existing sales data from your own titles or similar titles in the same category. Obviously this isn't always easy to come up with but you can try sifting through the data NDP makes available on the net to see if there's anything valuable there.

The big things you're going to need are:

1. Market size (ie. # of targetable customers)
2. Typical # of units sold per title in that space. You can look at this for the "average" game but it's more effective if you look at it from the perspective of outliers as well.
3. Pricing model for your game and revenue % based on whatever publishing routes you're looking at.

With these kind of numbers you can come up with revenue targets that are worst case, conservative and best case.

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OK then thanks, this might make me boost the loans i need to buy some extra equipment, but prob just by a couple hundred.

We havent sold anything, most of the games we made were given away for free online, and they were mostly made by individuals or 1 or 2 members of the team.

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