How To Start A Board Game Business

Many individuals like to play board games with their family and friends. Board game companies create and sell board games for people to play.

 

Despite the rise of internet platforms, the board game business remains robust. It has risen since 2013, and the industry’s revenues nearly reached $10 billion in 2016.

Follow these ten steps to start a board game company:

Plan your Board Game Organization

Make your Board Game Company a Legal Entity.

Register your Board Game Company with the IRS.

Create a Business Bank Account and a Credit Card

Create an accounting system for your Board Game Company.

Obtain the Required Permits and Licenses for Your Board Game Company

Purchase Board Game Company Insurance

Create a brand for your board game company.

Create a website for your board game company.

Configure your Business Phone System

Starting a company entails more than just registering it with the state. This basic guide to launching your board game business has been put together by us. These stages will guarantee that your new company is well-planned, correctly registered, and legally compliant.

STEP 1: Make a business plan.

A well-thought-out strategy is vital for entrepreneur success. It will assist you in mapping out the intricacies of your organisation and uncovering some unknowns. Consider the following crucial topics:

What are the initial and continuing expenses?

Who is your intended audience?

How much money may you charge your customers?

Fortunately, we have done a lot of the legwork for you.

What are the expenses of starting a board game company?

The expenses of launching a board game company are very modest, yet considerable. It typically costs $18,000 to $20,000 to create a game and launch a company, however some firms begin with lower or greater prices. On Kickstarter, one board game company requested £50,000 in early beginning money (about $69,200), while another board game company started with just $1,000 AUD (approximately $738 USD).

Assuming a company owner has friends who are willing to test a game for free, the following are the most significant costs:

The game’s trademark and copyright

Hiring a professional artist to create the artwork

Producing the game

The fees for an artist might vary substantially based on the amount of detail needed and the artist’s skill. Manufacturing expenses are typically between $7 to $25 per device, while bigger orders might result in substantially cheaper per-unit prices.

What are the continuing costs of running a board game company?

Ongoing expenditures for a board game company include storage charges for unsold games and production costs for fresh units. Business owners may save money on storage by keeping unsold games themselves. Sales of in-stock units may cover the price of producing new units.

Who is the intended audience?

Board games appeal to a wide range of people. Even millennials enjoy a variety of non-digital games.

Most board game companies, on the other hand, zero in on a certain demographic for whom they aim to create games. For example, a company may create party games for social gatherings, strategic games for intellectuals, or generational games based on certain decades.

How does a board game business generate revenue?

A board game company earns money by selling completed board games. Games may be sold directly to consumers at retail pricing or wholesale rates to resellers.

How much money may you charge your customers?

Board games may cost as little as $10 to as much as $70, according to The Board Game Family. However, many games sell for approximately $30.

When estimating pricing, company owners should aim for four times the per-unit product cost. This will aid in the profitability of a corporation.

How profitable can a board game business be?

A successful board game company may bring in tens of thousands or hundreds of thousands of dollars. If a game costs $30 per copy, selling 1,000 copies would result in a $30,000 profit. Some firms are much more successful than this. On Kickstarter, one board game raised more than $12 million.

How can you increase the profitability of your company?

A board game company may improve its profits by offering expansion packs that consumers can acquire for a price. Board game entrepreneurs may also start a blog about board games.

A few board game enterprises have been adapted into video games or apps, although this needs a large investment in digital resource development.

STEP 2: Establish a legal entity

Sole proprietorship, partnership, limited liability company (LLC), and corporation are the most frequent business structure forms.

Creating a formal business organisation, such as an LLC or corporation, shields you from personal liability if your board game firm is sued.

STEP 3: File your taxes

Before you can begin for business, you must register for a number of state and federal taxes.

To register for taxes, you will need to get an EIN. It’s really simple and completely free!

Taxes on Small Businesses

Depending on the business form you choose, you may have multiple choices for how your company is taxed. Some LLCs, for example, may benefit from being taxed as a S company (S corp).

These guides will teach you more about small company taxes:

Taxes on LLCs

LLC vs. sole proprietorship

Corporation vs. LLC

S Corp vs. LLC

How to Form a S Corporation

S Corporation vs. C Corporation

There may be state taxes that apply to your company. In our state sales tax guides, you may learn more about state sales taxes and franchise taxes.

STEP 4: Establish a company bank account and credit card

Personal asset protection requires the use of distinct business banking and credit accounts.

When you combine your personal and business accounts, your personal assets (your house, vehicle, and other possessions) are at danger if your company is sued. This is known as penetrating your company veil in business law.

Furthermore, understanding how to develop corporate credit may help you get credit cards and other financing in your company’s name (rather than your own), lower interest rates, larger lines of credit, and other benefits.

Establish a business bank account.

Opening a business bank account is not only required when asking for business financing, but it also:

Separates your personal assets from the assets of your firm, which is required for personal asset protection.

It simplifies bookkeeping and tax reporting.

Create a net 30 account.

Net 30 accounts are used to develop and grow company credit while also increasing cash flow. Businesses use a net 30 account to purchase items and refund the whole debt within a 30-day period.

Many net 30 credit suppliers submit information to the main business credit agencies (Dun & Bradstreet, Experian Business, and Equifax Business Credit). This is how firms establish business credit in order to get approved for credit cards and other lines of credit.

Apply for a business credit card.

Obtaining a business credit card benefits you in the following ways:

Put all of your company’s costs in one location to separate personal and business spending.

Build your company’s credit history, which will be important for raising funds in the future.

STEP 5: Establish business accounting

Recording your numerous costs and sources of revenue is crucial to assessing your company’s financial status. Keeping precise and thorough accounting also makes yearly tax filing much easier.

STEP 6: Obtain all required permissions and licences

Failure to get appropriate permissions and licences may result in significant penalties or possibly the closure of your firm.

Requirements for State and Local Business Licensing

Certain state permissions and licences may be required to run a board game business. Visit the SBA’s reference to state licences and permits to learn more about licencing requirements in your state.

For information on local licences and permissions, visit:

Check with the clerk’s office in your town, city, or county.

Contact one of the local organisations mentioned in the US Small Business Associations database of local business resources for help.

Copyright & Trademark Protection

If you are creating a one-of-a-kind product, idea, brand, or design, you should safeguard your rights by registering for the necessary trademarks and copyrights.

The nature of legal obligations in remote education is constantly evolving, particularly in terms of copyright regulations. Here is a constantly updated website that may help you stay on top of legal obligations.

Here are two excellent resources for boardgame licencing to publishers:

Board Game License 101

Contracts for Board Game Licensing

STEP 7: Obtain commercial insurance.

Insurance, like licences and permits, is required for your company to operate safely and legally. In the case of a covered loss, business insurance protects your company’s financial well-being.

There are several sorts of insurance plans designed for various types of companies with varying risks. If you are unaware about the hazards that your company may encounter, start with General Liability Insurance. This is the most popular coverage required by small companies, so it’s a good place to start for yours.

Workers’ Compensation Insurance is another important insurance product that many companies need. If your company will have workers, your state may require you to purchase Workers’ Compensation insurance.

STEP 8: Establish your brand

Your company’s brand is what it stands for, as well as how the public perceives it. A strong brand will help your company stand out from the crowd.

How to Market and Promote a Board Game Company

By obtaining evaluations from bloggers and other reviewers, board games may be efficiently advertised. Many reviewers will write a review in exchange for a free copy of the game, and their review will help spread the word about the game among board game lovers.

How to Keep Customers Returning

By obtaining accolades, a board game company may distinguish itself from competing games on the market. If a seal is featured on the game’s box, even winning a little competition may help increase sales.

As a result, company owners should submit their games in as many contests as possible.

STEP 9: Create your company’s website.

After you’ve defined your brand and designed your logo, the next step is to build a website for your company.

While developing a website is an important step, some may be concerned that it is out of their grasp due to a lack of website-building skills. While this was a fair concern in 2015, online technology has made significant advances in recent years, making the lives of small company owners considerably easier.

The following are the primary reasons why you should not put off developing your website:

Every genuine company has a website, period. When it comes to bringing your company online, it doesn’t matter what size or sector it is.

Social media accounts, such as Facebook pages or LinkedIn company profiles, are not a substitute for your own business website.

STEP 10: Install your company phone system.

Getting a phone for your company is one of the finest methods to keep your personal and professional lives distinct and private. That isn’t the only advantage; it also helps you automate your company, provides it legitimacy, and makes it simpler for prospective clients to identify and contact you.