Henderson Loggie, a leading accounting and tax advisory firm with a history of supporting gaming companies for over three decades, has released a comprehensive guide tailored for video games start-ups.
With insights from industry veterans, it offers actionable tips to turn a fledgling gaming business into a success story. It not only offers a candid view of the challenges that lie ahead for aspiring entrepreneurs, but also provides the tools and advice needed to overcome them.
David Hamilton Executive Vice President, Ninja Kiwi, creators of the Bloons series, says in the guide: “Starting a games company is not just about having a great game idea, you need to spend some time researching who you are aiming the game for and what platform you are targeting. Once you have done this, business development is your next step, how are you going to make sure people see your game? Reaching out for a business mentor already in the industry will help you with this.”
Among essential topics such as funding options, how to write a business plan, choosing the right structure for a business, and understanding tax obligations, it includes several hard truths anyone considering launching a video games business should be aware of. The advice includes:
Product knowledge: While passion for your creative idea is vital, it’s equally important to understand what you’re selling. Evaluate if there’s a market for your game and whether it has the potential to attract paying customers.
Profitability; Always remember, video game startups are businesses first and foremost. Without a clear focus on profitability, your venture could be short-lived.
Innovation doesn’t mean reinvention: Scotland has been at the forefront of video game innovation for over 20 years, producing some of the best-selling games ever. Many successful companies innovate by enhancing existing concepts. Consider if you can add a unique twist to an existing idea.
Be Prepared: Starting a business can be overwhelming, especially if you’re new to the business world. Legalities, financial aspects, hiring, and game development all require serious attention.
Stephen Bain, Partner and head of the Games & Digital Sector at Henderson Loggie, said: "Scotland is brimming with creative talent and innovative game ideas. The games sector is worth £350 million to the Scottish economy, but growing start-up businesses is not without its challenges, and it’s not for everyone. You need to have the fundamentals in place so your business doesn’t fail before you really start, and this guide is designed to help with that."
Henderson Loggie has a proven track record in the gaming industry, having worked with DMA design - the original creators of Grand Theft Auto & Lemmings, as well as many University spin-outs. The firm has helped clients save almost £6 million in corporation tax as a result of Video Games Tax Relief (VGTR) claims1. Introduced in 2014, VGTR allows UK games companies to claim relief against money spent on the design, production, and testing of a British video game.
For more information and to download the guide, visit Henderson Loggie’s website.
Henderson Loggie
Chartered Accountants, Tax and Business Advisors based in Aberdeen, Dundee, Edinburgh and Glasgow.
