Transcript GDC Austin/Online 2009 Business Managing Your

Bootstrapping Basics
STARTING AN INDEPENDENT
DEVELOPER
JENNIFER BULLARD, PRODUCTION MANAGER
CERTAIN AFFINITY, INC.
Bootstrapping
bootstrapping [ büt stràpping ] Building a business
out of very little or virtually nothing.
Business Sense
IP AND WORK FOR HIRE
SOLID BUSINESS PLAN
FISCAL RESPONSIBILITY
IP and Work for Hire
Why IP?
Why Work for Hire?
 Rewarding
 Income
 Long-term survival
 Reputation
 Enhance skill sets
 Business Maturity
Profit Consumption
 Not all staff engaged
 Downtime between projects
 Sick leave, vacation and comp time
 Development of own IP and pitch materials
Not Enough Margin
 Breaking even with “20% profit” is doing well!
 Bootstrappers need a lucky break in order to have
financial reserves
 Cost control is absolutely essential
Business Support Relationships
Internal Functions
External Functions
 Software development
 Publishing
 Dev support and IT
 Business development
 Outsourcing




management
Recruiting
Self promotion
Community management
Vendor management
 Benefits and HR





consulting
Accounting and payroll
Retirement planning
Insurance agent
Attorney
Real estate agent
Finding Good Support
 Learn what to do in-house vs. external
 Ask other developers for references
 Business people know business people
 Utilize contractors until you know there is a need for
full time hire
The best things in Life are Free
 Google Mail
 Subversion
 PhysX – free physics software
 Bug Database
Keep it inexpensive
 Unity
 Second Hand Furniture
 Travel & entertainment
 Employee owned items
Fiscal Responsibility
 Spend wisely & well
 Save for a rainy day
 Time = Money
Business Relationships
LEARN FROM OTHER’S MISTAKES
LEARN FROM OTHER’S SUCCESS
Business Relationships
Lessons learned
What we’ve done well
 Myth of long term
 Follow through on
relationships
 The speed of business
 Your own best
representative
commitments
 Don’t waste other
people’s money
 Don’t put all your eggs
in one basket
Business Relationships: Lesson #1
Myth of long term relationships

Steady Work

Publisher long-term interest

External Factors
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Stay on top of industry news and rumors
Business Relationships: Lesson #2
The speed of business
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Contracts take time
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Work before contract finished

Milestone deadline + Time = Pay day
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Keep 6+ months of current burn rate in the bank
Business Relationships: Lesson #3
Your own best representative
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Spend your time wisely
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Avoid being critical path on development

Hire people that you can delegate to with confidence

Promote your company every chance you get
Website
 Facebook
 Speak at events, blog, press releases, etc.

Business Relationships: What to do well
Follow through on commitments

Consult your leads

Diligently work towards deadlines

Always meet or exceed the expected quality bar

Communicate frequently and proactively with partners

Admit your mistakes & remedy them quickly
Business Relationships: Fiscal Responsibility
Don’t waste other people’s money

Publishers want to work with stable developers

Even the most well-off partners respect tight cost control

Everything makes an impression, from office space to your
personal automobile
First Office, Exterior
First Office, Security Guard
Whew,
security is
sure hard
work!
Business Relationships: Diversify
Don’t put all your eggs in one basket

Partners come and go

Multiple projects

Stellar production management
Business Relationships: Facts
 Look out for your own best interests
 If it doesn’t exist in writing then it doesn’t exist
 Never say no until you’ve said yes
 Never look desperate
 Relationship building lasts forever
 Reputation maintenance is constant
 Give only what you can
 Find out why
Team Building
Team Building
Lessons learned
What we’ve done well
 Not everyone is fit for a
 Maintain high quality
startup
 Don’t take shortcuts in
hiring
 Watch group dynamics
 Know when to let go
standards
 Hire experienced
developers
 No communication
barriers
 Rewards
Hiring on a Shoe String Budget
 Find a ‘comfortable’ salary
 Offer incentives (cut them in)
 Utilize Contractors
 Wear many hats (Learn new skills)
Team Building: Lesson #1
Not everyone is fit for a startup

Talent doesn’t equal business maturity

Previous startup experience is a definite plus

People willing to take personal risk can help you get off to a
good start

Look for people that always give 100%
Team Building: Lesson #2
Don’t take shortcuts in hiring

Establish a strong process for screening candidates

Don’t bypass process due to existing relationships
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Don’t lower quality standards due to pressing needs
Team Building: Lesson #3
Watch group dynamics
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Smaller the team more critical the dynamics

Leadership team dynamics are especially important
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Get leads on the same page before communicating with team
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Trusted advisors can convey the feelings of the team
Team Building: Lesson #4
Know when to let go

Recognize when the risks of retaining a problem employee
outweigh the benefits

Act quickly and decisively to remedy this situation
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Make sure the company is protected

Communicate with the team so the lessons aren’t lost and
you’re not sowing fear
Team Building: Quality Counts
Maintain high quality standards
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Set a high bar for candidates from day one
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Communicate quality bar to everyone involved
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Expect high standards regardless of role
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Personally meet and approve all hires
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Trust your gut
Team Building: The Right Experience
Hire experienced developers
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Need a good mix of experience and fresh perspective
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Lean towards experience early on
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Fill leadership positions with experienced people
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Experience with failure and success are both valuable
CA Developer Experience
All Staff
Leads
9
8
7
Employees
6
5
4
3
2
1
0
Less than 5 years
5-9 years
10-14 years
Development Experience
15+ years
Team Building: Communication
No communication barriers

Everyone’s voice matters
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Pay careful attention to who’s sitting where and next to whom
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Open office layout solves problems for you
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Don’t separate yourself from the team
Open Office Layout
The New Economy
CHALLENGES AND OPPORTUNITIES
Challenges in The New Economy
Increased competition

More developers willing to do work for hire

Developers willing to work for less

Startups forming from laid-off employees
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Publishers offloading games and even entire teams

Individuals jumping part time into the market
Challenges in The New Economy
Everyone is trying to reduce risk

Budgets are tight
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Most publishers are cutting back external spending

Publishers more likely to cut losses, cancel projects
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Fewer publishers taking chances on new IP
Benefits of the New Economy
 Best time to be hiring
 Lots of great talent looking for a home
 Fewer illusions about stability of large corporations
 Willing to reduce salary needs
 May trade the ‘normal package’ for some flexible options
 Natural selection
 Those that survive will be stronger for it
 Better business practices will make the industry stronger
Benefits of the New Economy
 Contracting
 Publishers cut too deep and need to work in contractors
 Offer your services as an outsourcing solutions
 More smaller bits of work available
 New IP for the win
 Entertainment can’t be solely sequel-driven
 Consumers will want something new very soon
 Strong new IP will be valuable in the future
Q&A
PLEASE INTRODUCE YOURSELF
[email protected]