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Sunday, November 18, 2012

Business Plans and the Role they Play Within the Video Game Industry, Pt. 2


In our last post we discussed some advice business plan experts had to give when it came to putting together a business plan. The two experts spotlighted were Steve Blank and Andrea Cockerton. Both had rather interesting views on what things were important to consider when developing a plan. The question now is, how applicable is their advice when looking to build an entertainment business? Like with most advice one may get, good advice is only as valuable as a person chooses to act on it. From personal experience and research, there truly is no one “right way” to make a business plan. Every business is unique, which in it of itself is key to success, and the plans those businesses were built on differ as well. This is said for the sole reason that, as you read this, if you feel the advice showcased here is not applicable to your business, do not get discouraged. The best advice that can be given, should you find your self in that position, is to try a new perspective. Meaning, how does that advice benefit another company per sé and what would be a comparable benefit in your field.

Steve Blank
Now if you all recall from the last post, Steve Blank basically believes business plans are put to better use when applied to companies that already have “history”. While no one is arguing that statement, the truth is that business plans are great and just as important for start-ups as well, if not more important. Mr. Blank said that business plans for start-ups served their purpose in giving its entrepreneurs “practice”. Although his statement may be true, the benefits of writing a business plan for start-up do not stop there. Aside from having a scenario of what your business would like when its all up and functioning, having a business plan also shows potential investors that you know what you are doing. In reality every business has to start somewhere, and even though they do not all start with a business plan in hand, it is this blog’s opinion that having one can only make your case and idea stronger. For those out there looking to make their entrepreneurial dreams come true, we recommend that you do your research well from the beginning. There are plenty of sites and resources out there one can learn from. Sites like Entrepreneur.com post articles and other information continuously, like Adam Toren’s “5 Ways to Set A New Company Up For Success”. Again, every business is different, so take any and all advice with a grain of salt; some resources may prove to be better suited for your venture than others.

Andrea Cockerton
Andrea’s advice on writing a business plan can be applied to almost every individual out there doing so. She gave us three must-haves a business plan should have before even considering to ever pitch the idea to potential investors. Again, from personal experience, her three must-haves make perfect sense. She said one thing everyone had to look for was that his or her intended market was still growing. If you find yourself creating a new market, then the growth ability has yet to be seen, but that also makes another must-have you should have easier to push. That must-have is that what you are intending on selling is unique in some way. Most people may get turned away at this point for various reasons, maybe they get overwhelmed or something. Having a unique idea does not mean having a game-changing invention or innovation. For all you know the unique idea may not even be on the product side of your plan but on the execution side of it. Meaning, you may be selling a product that is already out there, but you have found a way to do it faster and cheaper, or safer and more reliable, or whatever else the case may be. It is a lot like that saying that goes that beauty is in the eye of the beholder; well substitute uniqueness for beauty and the same thing can be said. Andrea finally said that the third must-have had to be the talent one had executing the business as a whole. If you are a budding animation company, you would do better having top-notch animators. If you were a video game company, your programmers and engineers should come with their fair share of experience. Investors like to see that a company is in good hands with people who know their craft as best as possible. This not only reduces the learning curve but also the risk a company might have within investors’ eyes. Visiting again Entrepreneur.com, writer Kara Ohngren gives everyone examples of where one can go to find that right talent to make up that core of individuals your business may need. The key thing is to think out side the box and strive to make your business idea as best thought out as possible. If you do that, then investors will not only see that you are serious, but also that you are worth making that investment on.

Like it was said above and in the last post, no two businesses are ever identical, and what may work for one does not necessarily mean it will work for the other. If you stay grounded and keep within realistic means, what you then pitch towards investors would yield a much better result as opposed to doing otherwise. We here at Pencils and Vectors cannot stress enough the importance of doing your research. Knowledge is power, and thoroughly investigating your field and industry will only make you a much stronger and more able player within the business field in general. We wish you the best of luck in all of your endeavors and look forward to hearing your thoughts on all of this.

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