The Games Game

The School of Opportunity Knocks (August 2008)

Dear Tom,

I'm about to graduate with my degree in Game Design. A relative left me a fund of $100K that I can tap into immediately after graduation, and I'll use that to start my own game company.

I've read enough of your advice to know you think that's a stupid idea, but that's what I'm going to do. I'm not going to get a business degree, and I don't want to take any business courses, either. I know making games involves collaboration, and I'm cool with that, it's just that I don't want to make games working for someone else.

Given all that, what do I need to know, and what's the fastest way I can learn it so I can get started?
 
Silverspoon

Hi Silverspoon,

Learning comes in many forms. And experience is one of the best teachers around. So at your request, I won't bother advising you not to start a business before you even know Thing One about how the workaday business world works, or not to start a game company before you have an inkling of how the game industry works. The fastest way to learn what you're going to learn is to just go right ahead and do it. As soon as you form your company, you'll learn about incorporating, and registering with the local government, and business taxes. Especially when you get official government letters informing you that now you owe not only back taxes but also a penalty. That's good learnin'!

Because you need others in your venture, and you don't want to work for someone else, you'll probably partner with others who feel the same way. You'll learn about partnerships in the business world that way. And you'll learn that partnerships only go so far, that you'll also need employees, and that somebody has to be boss. You say you don't want to work for "the man," but to your employees, you'll be "the man." At some point, some disgruntled former employee will sue you or register a complaint with the state employment agency. So you'll learn about regulations and employment contracts.

You'll learn how fast $100,000 can be spent. That's not nearly enough to run a company for two years, so you'll learn about business loans and how to stretch your money. You'll learn that beyond salaries, there are equipment, software, web hosting, and legal costs. And when you've outgrown your parents' garage, there'll be office space, utilities, and parking costs. Once your first game is demonstrable, there'll be conference and travel expenses, as you pitch your first game and your company's development services to publishers.

By all means, Silverspoon. Go ahead with your plan. You'll get an excellent education. The learning will be painful, and in my opinion more painful than taking a few business courses and taking a game job for a while. The business courses can't teach you everything, but they'll surely help. And some experience working in the biz would help even more. But hey. Now I'm telling you stuff you asked me not to.