Start a board game company by following these 10 steps:
You have found the perfect business idea, and now you are ready to take the next step. There is more to starting a business than just registering it with the state. We have put together this simple guide to starting your board game company. These steps will ensure that your new business is well planned out, registered properly and legally compliant.
Check out our How to Start a Business page.
STEP 1: Plan your business
A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:
- What are the startup and ongoing costs?
- Who is your target market?
- How much can you charge customers?
- What will you name your business?
Luckily we have done a lot of this research for you.
What are the costs involved in opening a board game company?
The costs of starting up a board game business are fairly low, although they are significant. It usually takes $18,00 to $20,000 to get a game made and start a business, but some businesses start with lower or higher costs. One board game business on Kickstarter initially asked for $29,750 in start-up funds, while another board game business began with upfront costs of just over £5,000 (about $6,600).
Assuming a business owner has friends who are willing to test a game for free, the biggest expenses are:
- Trademarking and copyrighting the game
- Hiring an artist to make the artwork
- Manufacturing the game
The costs for an artist can vary greatly, depending on the level of detail required and the experience an artist has. Manufacturing costs often run between $7 and $25 per unit, although larger orders can bring per-unit costs much lower.
What are the ongoing expenses for a board game company?
Ongoing expenses for a board game business include storage costs for games that haven’t been sold yet and manufacturing costs of new units. Business owners can keep storage costs low by storing unsold games themselves. Manufacturing costs for more units can be funded by sales of in-stock units.
Who is the target market?
Board games appeal to a broad demographic. Even millennials are playing lots of non-digital games.
Most board game businesses, however, focus in on a particular demographic that they want to develop games for. For instance, a business might make party games for social outings, strategy games geared towards thinkers or generational games based on certain decades.
How does a board game company make money?
A board game business makes money by selling its finished board games. Games may be sold directly to customers at retail prices or to resellers at wholesale prices.
How much can you charge customers?
According to The Board Game Family, board games can sell for as little as $10 or as much as $70. Many games, however, cost around $30 retail.
When calculating price, business owners should try to make their game’s retail price four times the per-unit product costs. This will help ensure a business is profitable.
How much profit can a board game company make?
A successful board game business can make tens or hundreds of thousands of dollars. If a game sells for $30 per copy, selling just 1,000 games would generate a revenue of $30,000. In some cases, businesses are much more successful than this. One board game raised over $1 million on Kickstarter.
How can you make your business more profitable?
A board game business can increase its profitability by creating expansion packs that customers can purchase for an additional fee. Alternatively, board game business owners can create a blog on board games.
A few board game businesses have been developed into video games or apps, but this requires a significant investment in developing digital resources.
What will you name your business?
Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Board Game Company Name Generator
When registering a business name, we recommend researching your business name by checking:
- Your state's business records
- Federal and state trademark records
- Social media platforms
- Web domain availability.
It's very important to secure your domain name before someone else does.
STEP 2: Form a legal entity
Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your board game company is sued.
Form Your LLC
Read our Guide to Form Your Own LLC
Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services. You can choose to hire a registered agent or act as your own.
STEP 3: Register for taxes
You will need to register for a variety of state and federal taxes before you can open for business.
In order to register for taxes you will need to apply for an EIN. It's really easy and free!
You can acquire your EIN for free through the IRS website, via fax, or by mail. If you would like to learn more about EINs and how they can benefit your LLC, read our article, What is an EIN?.
Small Business Taxes
Depending on which business structure you choose, you might have different options for how your business will be taxed. For example, some LLCs could benefit from being taxed as an S corporation (S corp).
You can learn more about small business taxes in these guides:
There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.
STEP 4: Open a business bank account & credit card
Using dedicated business banking and credit accounts is essential for personal asset protection.
When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.
Additionally, learning how to build business credit can help you get credit cards and other financing in your business's name (instead of yours), better interest rates, higher lines of credit, and more.
Open a business bank account
- This separates your personal assets from your company's assets, which is necessary for personal asset protection.
- It also makes accounting and tax filing easier.
Recommended: Read our Best Banks for Small Business review to find the best national bank, credit union, business-loan friendly banks, one with many brick-and-mortar locations, and more.
Open net-30 accounts
When it comes to establishing your business credit, net-30 vendors are considered the way to go. The term "net-30," which is popular among vendors, refers to a business credit arrangement where the company pays the vendor within 30 days of receiving goods or services.
Net-30 credit terms are often used for businesses that need to obtain inventory quickly but do not have the cash on hand.
Besides establishing business relationships with vendors, net-30 credit accounts get reported to the major business credit bureaus (Dun & Bradstreet, Experian Business, and Equifax Business Credit). This is how businesses build business credit so they can qualify for credit cards and other lines of credit.
Recommended: Read our guide on the best net-30 vendors so you can start building business credit now, so you never have to worry about cash flow in the future. Keep in mind that poor cash flow is the #1 reason businesses fail!
Get a business credit card
- This helps you separate personal and business expenses by putting your business' expenses all in one place.
- It also builds your company's credit history, which can be useful to raise money and investment later on.
STEP 5: Set up business accounting
Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.
STEP 6: Obtain necessary permits and licenses
Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.
State & Local Business Licensing Requirements
Certain state permits and licenses may be needed to operate a board game company. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.
Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses.
For information about local licenses and permits:
- Check with your town, city or county clerk’s office
- Get assistance from one of the local associations listed in US Small Business Associations directory of local business resources.
Trademark & Copyright Protection
If you are developing a unique product, concept, brand, or design, it is prudent to protect your rights by registering for the appropriate trademarks and copyrights.
The nature of legal requirements in distance education is ever changing, especially in regards to copyright laws. Here is a frequently updated resource, which can help keep you aware of the legal requirements.
Here are two great links on boardgame licensing to publishers:
STEP 7: Get business insurance
Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.
There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.
Learn more about General Liability Insurance.
Another notable insurance policy that many businesses need is Workers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.
STEP 8: Define your brand
Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.
If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners, we'll give you helpful tips and advice for creating the best unique logo for your business.
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How to promote & market a board game company
Board games can be effectively marketed by soliciting reviews from bloggers and other reviewers. Many reviewers will write up a review for a free copy of the game, and their review will share the game with board game enthusiasts.
How to keep customers coming back
A board game business can set itself apart from other games on the market by winning awards. Even winning a small competition can help boost sales if a seal is displayed on the game’s packaging.
For this reason, business owners ought to enter their games into as many competitions as possible.
Still unsure about what kind of business you want to start? Check out the latest Small Business Trends to help inspire you.
STEP 9: Create your business website
After defining your brand and creating your logo the next step is to create a website for your business.
While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.
Here are the main reasons why you shouldn’t delay building your website:
- All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
- Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
- Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.
Using our website building guides, the process will be simple and painless and shouldn’t take you any longer than 2-3 hours to complete.
STEP 10: Set up your business phone system
Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.
There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use.
Recommended: Find the best phone system for your business; check out our review of the Best Business Phone Systems 2021.
Start A Board Game Company In Your State
Select your state below for an in-depth guide on completing each of these steps in your home state.
Is this Business Right For You?
People who are passionate about board games may enjoy owning a board game business. Developing a good board game that people will want to play requires testing and retesting a game design many times. Therefore, only those who like playing board games should try developing one.
Want to know if you are cut out to be an entrepreneur?
Take our Entrepreneurship Quiz to find out!
What happens during a typical day at a board game company?
Each board game that a business develops has three distinct phases:
- the development phase, which involves testing the gameplay and designing the game’s components
- the manufacturing phase, which involves actually making the physical board game
- the selling phase, which involves marketing and selling the game
During each of these phases, the focus of a business shifts. Development involves a lot of playing and replaying, as well as conceptual design work to create the pieces and artwork. When manufacturing, there are many logistical items to see to. Once a game is on the market, selling requires advertising a game and connecting with potential players.
Businesses that have multiple games in production may be involved in each of these three phases simultaneously. Those that only develop one game will be focusing on one stage at a time.
What are some skills and experiences that will help you build a successful board game company?
In order to successfully design a board game, it’s important to be familiar with the different types of board games. David Silverman has a post on board game design that includes a helpful list of different styles of games (e.g. Euro-style games, family games and deck-building games).
There are also several online courses for game design, including ones from MIT, EDX and Coursera. Not all of these courses are specific to board games, but many of the principles taught apply to games of all types.
What is the growth potential for a board game company?
A board game business may be a small operation that has just one game, or it can be a major international company that has many games created by multiple designers. Cardboard Edison, which has two games, is an example of a small-time board game business. Cards Against Humanity is another, having one main game and several add-on packs of cards. Hasbro is one of the largest board game publishers.
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Take the Next Step
Find a business mentor
One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.
Having a support network in place to turn to during tough times is a major factor of success for new business owners.
Resources to Help Women in Business
There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:
If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.
What are some insider tips for jump starting a board game company?
Many board game business owners launch their businesses on a crowdfunding site. In fact, more money has been raised for board games than for video games on Kickstarter.
Launching a business on a crowdfunding site not only lets business owners collect funds that can be used to pay for manufacturing expenses, but it also helps generate buzz around a game. The publicity of a crowdfunding campaign can create momentum that will generate more sales.
How and when to build a team
Many board game businesses have just a few employees. Rather than hiring artists as employees, business owners typically give them contract work. For fulfillment, most business owners either fulfill orders themselves or outsource the work to a warehouse.