Bootstrapping in the Age of Blockbuster Budgets

Albert ReedCo-Founder/Director of Development

Demiurge Studios

Latest Version at: http://www.demiurgestudios.com/G

DC/

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

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

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

Pre-Requisites: Infrastructure Computers, phones, etc. Place to work

Try to get office space with your first gig

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!”…

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

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…

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

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

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

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

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…

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”

Time & Materials

Steady income (brass ring!) Harder to profit from, without high-

rates or low-cost employees/contractors

Generally a less adversarial client-relationship

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

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

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