Small Studios - how do you fund yourselves?

09-07-2012, 04:09 AM
#1
Small Studios - how do you fund yourselves?

I run a small web design studio (2 of us), but we really want to stop that and start making iOS games now.

How do you small studios cope with funding yourselves for the duration of development? Do you get external funding? Bank loans? All multi-millionaires?!

Thanks for any advice
09-07-2012, 04:14 AM
#2
Quote:
Originally Posted by pbb76 View Post
I run a small web design studio (2 of us), but we really want to stop that and start making iOS games now.

How do you small studios cope with funding yourselves for the duration of development? Do you get external funding? Bank loans? All multi-millionaires?!

Thanks for any advice
Hi Pbb76,

I started 3 years ago as a hobby next to my day job. It then escalated from there, and now we get our development funds from apps that are already in the store.
This enables us to develop new games/apps while the other apps are funding the company.

I think you should start doing it in your free time og maybe use 20% of your time developing apps/games, and 80% developing websites (so you do not risk it all).

Hope it helps,

- Christian

We Got Pixels Try out Mathfeud for iOS! Download Mathfeud

09-07-2012, 04:57 AM
#3
I did it as a hobby outside of my day job - yes it takes longer but it gives you security and also lets you spend money on contractors to do the stuff that you can't do

Plague Inc. - Can you infect the world - over 200 million games played!

Check out the new and very cool cinematic trailer
09-07-2012, 05:01 AM
#4
You can look to take out a loan or fire up a kickstarter project, depends on how much finance you really need (not only for development, but also for marketing)

Have you calculated the total cost of developing your project yet?
an approximate ballpark figure might help you get more relevant replies here


To answer your original question:

Our first game (the original version of "Olympus Archery" which was later replaced) was completely self-funded out of personal savings.
Once sales started coming in, the company was able to self-fund more projects without needing any additional source of funding

Having lots of money doesn't mean anything
Some devs have spent fortunes making big games which dont even sell, whilst others have made huge earnings from indie/hobby projects that were never intended to be big

You dont need millions to make games, but you DO need good judgment (and a lot of luck)

09-07-2012, 06:59 AM
#5
For me it's been relative to what I did before, so I might not make a penny on most days but that's how things were anyway so it's ok for me to keep developing as long as it takes...I'm used to having no money for like ever! Obviously I manage to eat, but that's about it - happy to be coding full time!!

Web: www.zenout.co.uk
Follow: @zenoutJez
Developer: BubbleSand Tetroms (Attic Eyes...Soon!)
AppStore search string: "Jez Hammond"
09-07-2012, 07:38 AM
#6
Quote:
Originally Posted by Zenout View Post
For me it's been relative to what I did before, so I might not make a penny on most days but that's how things were anyway so it's ok for me to keep developing as long as it takes...I'm used to having no money for like ever! Obviously I manage to eat, but that's about it - happy to be coding full time!!
Respect!
09-07-2012, 07:46 AM
#7
Thanks good people!

We have about 5 project ideas that are ready to go (and we think are going to be really good games - but I guess everyone thinks that!)

We defo gonna be going the kickstarter route, but seems a lot of kickstarter projects are either mostly done or have at least a large amount of assets etc built. Seems to defeat the point a bit sometimes.

Other than that, yea, we are gonna have to split our dev time, but our web work is incredibly busy at the moment which is a right pain in the buttocks
09-07-2012, 12:37 PM
#8
I'm using my savings. I divert part of my income from my job to hire contractors who can help me with my project.

Kickstarter seems to have a lot of appeal. It's one way to pre-test if an idea can take flight or not. If there's not enough interest the project won't get funded, which is another way of saying you just saved yourself a lot of money that could have possibly gone toward a dud.
09-07-2012, 01:47 PM
#9
Our start-up is self-funded/boot-strapped with our own savings. We borrowed an additional $15k from the Canadian Youth Business Federation which has a very low interest rate. Would recommend you look into local/national programs in your area/country for small business and tech initiative type grants and loans.

Kickstarter can be great and all, but keep in mind that ~40% of projects fail in not reaching their funding goals (source). I would not put all your eggs in a basket and bank on kickstarter. If you can afford to use your own savings or borrow & beg from families and friends, that can give you the initial funding you need while you look for additional funding from grants, programs, bank loans and avenues like Kickstarter.

DP
09-07-2012, 10:30 PM
#10
I'm bootstrapping my first project from savings/extra disposable income. I have no experience in the gaming/programming industry whatsoever, unfortunately, so I'm learning a costly lesson but one I think is well worth it.

Jared Martin
Http://www.facebook.com/obscenemedia