In today’s COVID-19 era, most people are staying at home with limited outdoor activities available. That has led to severe depression and anxiety in some. The lack of human interaction has taken a toll on people.
The only way to break the monotony of staying home is to find hobbies that can express our creative abilities yet portray our expression. For example, most people quickly picked up gaming as their new passion. Additionally, multiplayer gaming allowed people to interact with each other and indulge in healthy competition. That freedom of expression and abilities which gaming provides will enable people to stay mentally sane.
Do you know that the gaming community and industry is growing at a tremendous rate? It increased by a whopping 9.3% from the year 2019, worth around $159 billion in 2020. If you are a gaming enthusiast, why not utilize this passion and open an online gaming business? With 164 million people in the US being video game players, it is a no brainer to start your online video gaming store.
The following is a step by step guide to open an online gaming business:
Writing a business plan will help you keep it running for a long time without facing any issues. It would be best to think about what your business will offer to the people and write it in your business plan.
Following are some areas you need to cover in your business plan:
Find Your Niche:
Explore your target market and decide on what you will sell. For example, you can sell gaming accounts, downloadable games, gaming merch, and gaming accessories.
Let’s say that you are planning on starting a website that deals in the sale of accounts. This type of platform will allow any user to buy and sell gaming accounts. The website could take a cut from the seller of that particular account to let him/her use the platform to sell his/her account.
It is vital to brainstorm your business’s name and the demographic you will be targetting. Having a bold name for your business will have a considerable impact. More people will attract by the name and logo of the company.
You need to charge your customers money a little over the market value so you can get a slight profit. If you are expensive, then your customers will prefer buying from other online stores. The same is the case with being lower than the market price. Not only will you be at a loss for trying to attract customers, but there is a chance that people might think that you are not reliable. You need to continually check the market to see which genre of games are popular.
After knowing the cost required to open your online gaming business, you can start looking at how to fund your business. Decide whether you have to put your capital in your business or raise finance. Finding investors is not as easy as you will have to persuade people to put their money on your business. If your business succeeds and you make enough profit, only then you can repay your debts. At Fusion Accountants, our dedicated team have an amazing understanding of the complexities with eCommerce accounting.
Even smaller companies that do not produce triple-A titles are still valuable to you at the start. If they want to host some of their games on your website, you should take the offer. That will allow you to have more traffic on the website and investment.
The next step you need to go through is business legalities. Before starting your business, you need to have a license and jurisdiction. You also have to look into the variety of state and federal taxes you will need to pay before your business can start. You will need a sales tax license from the state’s department, which will take some time. Furthermore, register for copyrights to protect your rights so no one can copy your products and more.
Choosing The Software
Choosing an appropriate software will be your next step in starting your online gaming business. Software is required for your website, as that is how your customers will interact with your business. Your website’s software should look bold and attractive so that your customers always prefer you over other companies. The software will be costly, but as your business progresses, you will profit because of it. The software will have a payment system management interface, encryption software, ways to manage the players, and much more.
Starting your online gaming business from scratch can be very difficult to do, but if you already are a gaming enthusiast, then half the job is done right off the bat. However, it would help if you stay committed and focused on making your business successful. Hopefully, if you follow the above guide, you can easily open your very own online gaming store fast. Please remember that dedication is the key to success.