1 / 19

Bootstrapping in the Age of Blockbuster Budgets

Bootstrapping in the Age of Blockbuster Budgets. Albert Reed Co-Founder/Director of Development Demiurge Studios Latest Version at: http://www.demiurgestudios.com/GDC/. Introduction. Bootstrapping : Funding a company with no external investment and with little or no personal wealth

turner
Download Presentation

Bootstrapping in the Age of Blockbuster Budgets

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Bootstrapping in the Age of Blockbuster Budgets Albert Reed Co-Founder/Director of Development Demiurge Studios Latest Version at: http://www.demiurgestudios.com/GDC/

  2. Introduction • Bootstrapping: Funding a company with no external investment and with little or no personal wealth • Without a means to bootstrap, the indie is in danger • Big budgets present opportunity for small studios • Look at the other lectures: • We Learned the Hard Way So You Don't Have To: How to Outsource Successfully • Multiple Site Game Development • Successful Outsourcing on Triple "A" Games - A Case Study of Forza Motorsport

  3. Prerequisites: Individual • Patience: Growth will be slow • Be willing to sacrifice 5 years of competitive earnings • Don’t wager what you can’t afford to lose • Willingness to work on less-than-ideal projects

  4. Pre-Requisites: The Team • Don’t got it alone • Need inspiration, pick-me-ups, complementary skills, sanity-checks • Selling an individual is harder • Game industry experience: It will save you time • Sales skill/expertise (not a full-time biz person) • Business consultant • Contacts • Talent

  5. Pre-Requisites: Infrastructure • Computers, phones, etc. • Place to work • Try to get office space with your first gig

  6. The First Gig: Sales Part 1 • Reach out to your contacts • Scour job boards and project pages (gamasutra.com, gamedev.net, etc.) • Compete on price versus hiring • Don’t be choosy. Look for isolatable tasks: • Programming: Installers, tools, gravy-features • Art: Bulk environment art, animation, non-essential characters • Demiurge’s first: “Infest!”…

  7. The First Gig: Infest • Web to native port • Knew the owner of the company • Got office space and $1000/week for two programmers • Saved $200/week for supplies, soda, t-shirts, “cushion” • Heat problems. Got a door on the bathroom

  8. The First Gig: Execution • Your reputation is everything • Set high expectations, meet them • Carefully manage the client relationship • “We’re half a man-day behind…” • Professionalism – blow them away • Don’t be a pushover. • Make trades for schedule • It will gain you respect • Remember you still have nothing to lose • Never stop selling…

  9. Building Value: Sales Part 2 • One project done, new prospects in the works • Use your new niche. Demiurge went with UnrealEngine • “Never turn down a job you don’t have” • Serious games, installers, ports, box art • Don’t pre-qualify the client, just get a check • Availability be damned! • Make a website, keep it up • Language tips: “We”, “Some other contractors”, “Previously”, “Absolutely” • Handling the “off site” question

  10. Building Value: Sales Part 2 • Talk to the right people. • Look for business-oriented contacts, avoid HR • Making the case for outsourcing is easier than ever • Lower your rates to land the value-building gig • Console experience, engine experience, Big Name Project • Don’t de-value your work • Never stop selling… • Cast a wide net, then steer the deal

  11. Building Value: Negotiating • Long-term projects are the brass ring • “A little bit pregnant” goes a long way • Tools, concept art, experience w/their tech are great • What to do when start/end dates don’t line up • Don’t stress until the deal is assured • It’s still early, don’t get caught up in contract details • They only matter when it’s too late • Hire a good IP/contract lawyer • Reach out for new skills. Leverage your reputation

  12. Building Value: Execution • Establish process • Better way to bake a normal map • Off-site task tracking/progress reporting • Scheduling capabilities • Build up a portfolio to sell skills • Start game-development team • Demiurge did this too early

  13. Fixed Price vs. Time & Materials • Avoid large fixed price gigs until team is practiced • Nudge gently – in the end the client decides • Leverage benefits of each…

  14. Fixed Price • Much riskier • Bigger potential pay-off • More independence • Easier to develop own tools, processes, techniques • Watch out for fixed price AND fixed date • Avoid “incentives”

  15. Time & Materials • Steady income (brass ring!) • Harder to profit from, without high-rates or low-cost employees/contractors • Generally a less adversarial client-relationship

  16. Pricing • “The only way that you know you left money on the table is if you didn’t get the deal” • Examine costs of the hiring alternative: • Salary + benefits (Health care, 401k, vacation) • Hiring/firing costs (time and $) • Equipment • Is hiring even possible? • Client doesn’t have value of internal talent • Other industry rates will be higher

  17. Why to Outsource? • Your team represents difficult to hire developers (perhaps in quantity) • Your team is trained to get up-to-speed quickly on new projects • Your team will inflict a minimal drain on their existing leads • Hiring you does not raise their burn rate which gives them flexibility down the road • You have staff with a variety of expertise; you can put exactly the right person on each task

  18. Looking Forward • Define corporate goals early • Culture • Product • Build value and advance goals with every gig • Starting internal development • Big: When you can pitch the team • Small: When you can afford it

More Related