Perhaps the explosive development of the esports sector has piqued your interest in starting your own esports company or squad. Or maybe your love of gaming has sparked a concept that you think will be profitable.
Esports possibilities presently range from being a professional player to forming an esports team or hosting an esports event, as well as selling gaming equipment, teaching esports players, broadcasting, and providing support services.
Despite the possibilities, becoming an esports entrepreneur or establishing an esports company will not be simple. It will require a good concept, a lot of hard work and dedication, as well as some thorough preparation.
But it's a distinct possibility. Just as it was when the internet began to gain traction, when mobile apps became popular, and when the first bitcoins were traded. In a rapidly growing sector, there is a lot of room for success.
We'll look at where you should begin your esports business adventure here, and then it's on to further research, planning, company-building, and perhaps finding industry mentors and investors for you!
- 1. Conduct market research
- 2. Do some market research on esports and determine what kind of esports company you want to start.
- 3. Create a budget, a profit and loss statement, and a revenue projection — all of this should be included in your business plan.
- 4. Choose a specialization, a niche, or a single esports game to focus on.
- 5. Work together and network
1. Conduct market research
Ideas are easy to come by, particularly if you have a love for the esports business, some expertise, and maybe you've previously completed.
Research is the first step in turning a concept into a profitable company. You must verify that your concept can be turned into a profitable venture. By 2022, the esports sector is expected to have grown from a value of over $1 billion to $3 billion. But what about the esports niche in which your company will operate? According to Entrepreneur, marketing professor Aaron Keller says:
“It's a huge red flag when someone talks about how large the market is—multi-billions of dollars—but doesn't explain how the concept would fulfill an unmet demand in the market.”
Begin your investigation by:
- Examining your consumers' needs and expectations
- Confirming interest with prospective consumers
- In other sectors, comparable goods or services may be compared.
- Identifying and researching your rivals
- Creating a SWOT (Strengths, Weaknesses, Opportunities, and Threat
- Looking for prospective partners or supporters
2. Do some market research on esports and determine what kind of esports company you want to start.
So, you've completed your research. Although you may have begun by choosing what kind of esports company to start, after doing more study, you may expand on that concept. Alternatively, if your study indicates that your original idea may now be viable, you may now have a better one. After you've done your research, it's time to make a definitive choice about the objective of your esports business.
Your esports company could be:
- An esports team is a group of people that compete in online games.
- A gaming-specific marketing service
- Creating Twitch content and streaming your game An esports organization or club for players
- An e-commerce site that sells video game goods.
- Reporting on gamers and professional athletes is what esports journalism is all about.
- A consulting or service provider in the field of technology.
- A whole fresh concept
3. Create a budget, a profit and loss statement, and a revenue projection — all of this should be included in your business plan.
While doing your study, you started to consider your prospective esports market. After you've done your homework and determined that your esports company has a clear niche, you'll need to create precise revenue forecasts.
However, don't exaggerate figures; optimism won't assist you at this point; if you anticipate more earnings than your market can provide, your company will collapse.
Your company strategy is built on the foundations of your research and now your financial planning. You'll need to establish a budget, plan your profit and loss (P&L) account, predict accurately, monitor your cash flow, write a balance sheet, and much more. Once again, do thorough research and seek counsel if necessary.
Attend meetings and seminars hosted by local entrepreneurial and small business organizations; you'll learn a lot and they'll be eager in hearing more about your esports business concept.
We're putting together a basic overview here; you can also discover a wealth of material on the internet, as well as local organizations and assistance for young entrepreneurs.
When you've gathered all of your financial information, you'll be able to determine how much money your company will need to thrive and how much money it might earn. You can determine whether your esports company is viable if it will pay your employees and make a profit, using this thorough month-by-month planning. If the numbers don't add up, your company will fail.
If your financial planning is precise and not too optimistic, though, you may discover that you have the foundation for a successful esports company.
Consider teams like Cloud9, who are valued at over $400 million, or streamers like Ninja, who earn $500,000 a month by playing Fortnite and creating video content. In the fledgling sector, there are many esports companies earning a lot of money. Entrepreneurs like Kevin Chou, the owner of the Seoul Dynasty, and pundits like Sean “Day9” Plott are also benefiting. In addition, corporations like Adidas Sports, the parent company of Adidas, are providing start-up accelerator financing to prospective esports businesses with a solid idea.
4. Choose a specialization, a niche, or a single esports game to focus on.
Depending on your esports business concept and the market you've identified, it may be a good idea to narrow your focus even further at this stage.
If you want to start a team, become a writer, create a website, or improve your abilities to become a professional player, you need first concentrate on one esports game. Start with an area, a game, or a segment of the industry if you're starting a marketing or social media business.
Specializing enables entrepreneurs to establish a strong reputation and expertise in a certain area, allowing them to grow later. It may also be exhausting to attempt to cover too much territory right away. Start small, specialize, then expand as quickly as you can.
5. Work together and network
Now comes the hard part: growing your company, honing your talents, developing your product, expertise, customer base, or service. However, no company is an island. It's important to establish industry connections, collaborators, sponsors, and linkages, as well as co-marketing opportunities with complementary companies.
Of course, you don't want to collaborate with rivals, but you may cooperate with auxiliary service providers, esports event organizers, streamers, and esports teams.
If you're starting an esports team, for example, you'll want to network with prospective players, contact tournament organizers, keep an eye on publishers' every move, and look for potential sponsors. If you're making your own game gear or have developed new esports technology, streamers who evaluate it will get you a lot of attention. If you want to be a writer or start a game-focused website or club, you'll need to network with all of the major players in your field.
So there are a few pointers for aspiring entrepreneurs who want to establish their own business. Keep an eye on our “How to Start an Esports Business” guide for additional suggestions and helpful information as we continue to update this page.
Consider esports net worth and how audience growth is driving investment if you need more motivation before launching your esports company concept. Or how blockchain, cryptocurrency, and even gambling are expanding the esports industry's opportunities.