-The above diagram shows the importance of planing budgets.
-Students will be given the opportunity to create their own spreadsheet in order to understand better the finance and funding that goes with the planning of the creation of a new game.
When creating a business plan, the following things should appear within that plan in this order:
Loan Investor Grant Funding
Loan - A bank (or a financial service) loan granted for business use/purpose.
Investors - Normally individuals looking to invest their own capital. Also known as White knights or Business Angels.
Grant Funding - (free money) EMDA, EM Media have this kind of money "Any Monetary Aid"
Useful sources to get information on these are:
- Business Link
- confetti library
- EMDA or EM Media (located in Antenna)
Tax Breaks are any provison of the tax code, such as tax credit or tax deduction, that reduces the amout of tax that a firm or an individual will pay.
'nearly 75% of gaming executives in the uk think that a tax credit would allow them to pursue more orignal (from the the uk) intellectual property'
Advantages of tax breaks are:
1) Less money needed to start up the company/studio/creation of game
2) More attractive to the investor as profit will be higher
3)Cheaper for the consumer
4)Potentially better distrubution channels
Things to consider that tally into finances
Salaries & Benefits
Rent & utility bills
Indeminity Insurance (incase money is lost)
Patent or copywright costings