How to Start Your Own Indie Game Studio

Depending on the day, I must get asked how to start a video game studio more than just about anything else. Games are awesome! And unsurprisingly many game developers want to run their own show. If our student body at the Indie Game Academy is indicative of the larger industry, over 65% of devs want to start their own studios one day.

So naturally, I think about this a lot.

After quite some time working with our students, utilizing the knowledge I've gained from over 10 years in games and about 100 interviews with game industry experts (mostly Indies cuz I love indies), and feedback and review from a handful of trusted indie studio founders, I have compiled an incredible, convoluted flowchart to give you the highest level overview of how, yes, you too can start your own indie game studio.

(Fun fact, the above paragraph is a single sentence).

How do I start my own Video Game Studio?

BEHOLD! The biggest damn flowchart about starting your own game studio ever created! And what's more, here it is in high quality, downloadable PDF format for your perusing pleasure.

When creating this monstrosity, I did my best to highlight the most important steps you should be taking to start a studio. I also did my best to split these steps into 7 recognizable super-steps. I've written this article as a companion for the flowchart, as inevitably I can't fit everything I think is important to tell you in just one JPEG.

So! Let's go through the chart one super-step at a time. Buckle up, space cowboy.

1. How do you get the skills you need to start your own studio?

First and foremost, before you start a studio you need to learn how to make games. Yes. I know. This is a shocker.

I would hope that for most of you this is already the case. You should already be comfortable in at least one primary vertical of game development and competent with the technical tools required for that field. If you're uncertain about your vertical, check out this post.

If you don't have these skills, you need them. The next year or more of your life should be acquiring them. And how do you do that? You make games.

Start with a few simple practice projects. Then escalate to a solo game jam over a weekend. Do one or two more jams until you feel comfortable enough to join a game jam team. Then escalate your time box. Do a two week game jam. Do a one month one. Finish and release a game that took you at least 2 months to make, and you're ready for the next step.

And that's to get a job in the game industry. And then stay there for 2-3 years. Because founders with industry experience have a 200% higher likelihood of succeeding.

Much easier said than done, I know. And you are welcome to forge ahead without industry experience. But I strongly recommend you cut your teeth on a few other people's projects before your own.

(Frustrated and unsure how to get a job? Check out my last article for help).

2. What setup do you need to complete before starting your own game studio?

Before starting your studio, I have some homework for you.

First and foremost, and perhaps hardest of all, is to put together a team. While solo dev is a thing, remember that this is the exception and TBH I don't recommend it for most people.

Join communities, do jams with unique teams, and ask around until you have a team of 5+ trusted people with complimentary, diverse skills. They don't necessarily need to be co-founders, though they can be. Instead, think of them as your leads. As your company grows, they will grow with it, fostering their own departments and future hires.

Vet and prove this team with a handful of micro-sized projects, AKA jams again. You'll quickly find weak points, rough patches, and things you need to fix or repair about your technical skills and personality makeup.

Also spend time to dream together. Talk about your goals for the studio, your personal objectives, and the ownership and compensation each team member will get. Spend some time to establish a shared Vision, as well as shared Values. And then move on to do a branding pass for your studio using this information. What is it that you do, that nobody else does? Niche yourself into a specialization and you'll more easily find an audience.

(Bonus: Here is a free worksheet from our Level 3 program to help you find shared Team Values)

3. Time for a Test Run

Before you spend the time and money to formally found a business entity, you should do a trial run with your team. But more than just a jam. Something serial. Super serial.

I recommend this take the form of a mid-scale game project, released to an actual store, 2-4 months in total time allotted.

This should also be a test of your business acumen. Instead of just building another game, I want you and your team to do your best to build something viable. AKA, something that can actually make money.

Please know that charging any kind of money without a business entity represents some risk. You can do it, but you are accepting legal obligation for the game on your own personal shoulders. So consider not charging money, and instead aim for a different success metric. I recommend total downloads.

Alternatively, you could open a bank account and collect revenue there, not to be touched until you reach a certain threshold. This can then be the cash you use to actually start the studio.

Whatever you do, set an actual goal. Keep it very attainable, just $500 or 300 total downloads, such that this step doesn't stop you from moving forward. But making a few hundred bucks or starting to build an actual audience is a galvanizing moment for a team. It helps build confidence, camaraderie and it makes the next project even better.

Depending on how it went, learn, adapt and grow. Perhaps find new team members if some skills are missing, re-negotiate relationships, try again if it was a real dumpster fire, and then you're ready to start.

4. How do I actually start a business?

I'm going to give you very simple advice in this step. And that is to first find a lawyer you trust, and then a good accountant.

These two people will be semi-permanent partners to you, and the best ones basically become team members. Begin by talking to your Lawyer about your options for starting an Indie Game Studio. They will recommend which business entity to form (I usually recommend an LLC but I'm not a Lawyer and this is not legal advice) and they will give you all the boxes you need to check. Check them.

Then chat with your accountant. They will tell you how to stay legal, track your expenses, pay taxes, start a bank account and so much more.

Please listen to these people, as companies and individuals have had serious legal problems when ignoring them. Do your taxes, folks!

5. I have a business, how do I get funding?

I used to be scared of the idea of raising money for my various business ventures. It seemed like this huge unapproachable step. But I'm here to tell you that honestly, it's not that big a deal. It's basically just math, actually.

Start by estimating how much money you'll need to build and release your first video game. Show this to your accountant, and any other mentors you might have in your life. Oftentimes you'll miss critical expenses you may not have known about.

Once you know how much money you need, it's just a question of where it comes from. Here are some of the most popular options:

Self Funded/Bootstrapped: So many devs opt for this one. Self funding essentially means you pay yourself through other means, usually from a full time job. This is hard in terms of hours, but doable, and low risk.

Publishing: Finding a publisher is what I often recommend these days. An existing entity will pay you some amount of money to build the game, then market it for you, and then take a substantial cut of profit, usually 30-70% in total. But hey, 30% of $1 million is a lot more than 100% of $1,000.

Crowdfunding: Getting a big group of people to each pay you a little is a great way to raise money with no investors. However, it essentially requires that your game be 75%+ completed, and it requires you to bring the vast majority of your backers yourself (meaning you already need a significant sized fan base). Plus it just takes a lot of work.

VC (Venture Capital): The big dogs in the ring, VC are the people investing half a million dollars or more into their ventures. These are typically not an option for game devs unless the game is somehow setting up infrastructure of some sort, such as a marketplace or service for other games, or otherwise has a massive revenue potential. When I say massive I literally mean $1 Billion +.

Grants: I've seen many indie devs pay their way with large and small grants. Difficult to get, not generally very much money, but excellent options if they can be secured. Check out Epic Mega Grants to start.

Others: There are plenty of other ways to raise money. Donations, friends and family, insurance fraud (this was a joke) etc. Get creative!

6a. I'm self funding the majority of my game. What now?

You are very brave! In many ways, I envy you.

If you've set up a business entity and plan to entirely self fund it, start by identifying a potential market opportunity. Basically, a theory about how your game could make enough money to sustain itself. Perhaps you think the JRPG genre is due to be introduced to VR. Or you think Sims 4 players are sick of all the crap EA pulls and you could do better. Or you think Vampire Survivors could do well on mobile.

Whatever it is, do your best to be realistic about how a concept could make actual money. And for that matter, enough money to pay everyone.

Do some actual math here. How big is the market? How many people is it realistic for you to get the game in front of within a year? How much will your audience pay for it?

Then brainstorm potential games that could fit that market opportunity. Filter out the crappiest ones, and prototype the very best with real people. Pick the one that seems the most promising.

Collect an audience early and as diligently as you can. Share everything. Keep them engaged. Ask for their opinions and playtest with them regularly. Build hype.

Plan out the game and your expenses. Make sure you can make it through 4x your initial roadmap if you had to, because often it takes longer than you think.

And then build your game! One milestone at a time.

6b. I'm crowd funding the majority of my game. What do I do?

Crowdfunding more or less requires that your game already be done. Or at least 80-90% done. And it also requires that you have a substantial audience ready to back you.

Stats suggest that between 20-25% of campaign followers will actually wind up backing upon campaign launch, and only 1-5% of email subscribers will. And Kickstarter still recommends that you bring 70% of backers to the campaign yourself.

So, quick example math. Let's say you have a 2k person email list, with 1k people following your campaign. That means you can only expect a max of about 350 of them to back you, and Kickstarter will bring perhaps an additional 150 or so.

Let's say your average pledge size is $20 (which is around the 25$ Kickstarter average), that means that with 3k community members you can expect somewhere around $10,000 in backing.

These stats are freely available and make calculating what is likely to be made by any particular Kickstarter campaign very straightforward. And while there are always those viral hits, you just can't really count on that happening to you.

I don't say this to dissuade you, but I find many fresh devs who think crowdfunding is this magical unicorn when it just isn't. It is essentially a marketplace.

So if you choose to fund this way, your first step is to build a massive community. Then give yourself 6 months of prep time before the campaign. Immediately put up a pre-launch page and begin gathering campaign followers there. Seek advice and do your research on building the actual campaign. Line up YouTubers, Twitch streamers etc to broadcast on day 1. Get your friends and community members to agree to pledge then as well. And then launch.

(Here are some other Kickstarter tips.)

6c. I'm funding my game through a publisher. What do I do?

Publishers are awesome, and terrible. The best of them act like advisors that pay you. The worst of them will literally steal your identity. (I quite literally met a man who had to legally change his name due to an insanely bad publishing deal).

If you want a publisher, first make sure you have that lawyer. Then research the top few publishers you think your unique studio niche will mix best with. Then investigate their game libraries, and try to identify what kinds of games they would be most interested in.

Next, brainstorm possible game concepts that you think fit similar criteria and that you also think are viable. Prototype the top few with real people, and then pick one that looks the most promising.

Build out a vertical slice of this game, as well as a pitch deck.

A vertical slice is a representative demo of what the game will be like. It should include all core mechanics and, most importantly, the "special sauce" of the game, demonstrating why your concept is awesome and investible.

A pitch deck is a group of slides about why your concept is awesome. Include how much money you're asking for, metrics, finances, your budget, projections on how much money you think you'll make, mechanical summaries of the game, and why your team are the right people to get the job done.

Then solicit publishers in any way you can. Go through their website and official channels. Follow and reach out over social media. Set up meetings at conventions and events. And pitch to every single one of them who will listen. Be relentless, seek feedback, iterate and eventually you'll find your big break.

(Here is a massive list of video game publishers.)

7. Woah. I have an Indie Game Studio...

Congratulations! It was a lot of work to get here, but you have successfully founded an indie studio with enough money to survive and a game on the way.

What now? Well! Start with a little celebration. Make sure your team feels valued and energized. And then build that damn game.

Insist on this being the highest quality project you can possibly put together. You never know when you'll get another chance. And enjoy yourselves. Be goofy. The magic of your joy shines through to the published project. Always.

And of course, drop me a line and tell me how it all went.

Good luck intrepid game developer. I have found that a person who relentlessly pursues their goals cannot be stopped. And that one way or another, at one time or another, the universe bends to fulfill their dreams.

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