E-Sports Business Plan

E-Sports Articles

Some years ago, eSports was just a private community of people who would gather at conventions to play video games. But today, as the history of eSports continues to unfold, media giants such as ESPN and Turner are broadcasting eSports tournaments and competitions. So, it's comprehensible why traditional media companies want to invest on this growing trend just before it floods into the mainstream. If you are planning to begin an eSports business, this business plan is for you.

esports business plan

Business Model

In this section of the business plan for eSports you will understand how the business work and the most essential characteristics of ESports, which stands for electronic sports, which is basically professional video gaming. It generally takes the form of multi-player video game competitions where players can come together to play for glory and money, usually large sums of it. In popular tournaments, you will see thousands converging on site. Such events are often streamed online with some of them drawing millions of viewers. The business usually revolves around assembling tournaments and getting sponsors and media coverage to back them.

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Business Summary

market positioning

Market Positioning

The eSports industry exceeds $100bn in annual revenues and it continues to grow faster than the broader entertainment sector. While eSports currently lack a comprehensive business model, there are many who believe its commercial trajectory is primed to surprise, especially if mainstream broadcasters see eSports content as an asset that can attract viewers. In this section of the plan you will understand the industry and the strategies to position the company within the marketplace.

team management

Operations Plan

In this part of the business plan there is a description of the logistics and operations plan to run a successful eSports business. An explanation of the processes, staff, schedules, training, suppliers, technology and more will be further describe in this section of the eSports business plan.

Marketing Plan

The marketing plan chapter of the eSports business plan defines the unique value proposition and market niche for the company, resulting in focused marketing communications targeted at the consumers who fit best with the business services.

trade shows

Market Segmentation

The audience demographics for the eSports business is very tricky because it is usually young, passionate, male-dominated, and tech-savvy. They live online and on social media, are avid ad-blockers, and don't watch traditional TV or respond to conventional advertising. In fact, they are professionals in blocking ads. In this section of the plan you will find the strategies to reach this kind of public by understanding their profiles and needs.

business development

Promotional Strategies

There are many different promotional opportunities to lure competitors and viewers towards eSport business. These include social media coverage, including YouTube advertising and live-streaming for competitions, along with establishing meaningful relationships with broadcasters and sponsors.

Financial Projections

The eSports market is expanding rapidly. For instance, eSports generated $747.5 million in revenues in 2015. Most of this revenue ($578.6 million) came from sponsorships and advertising while $55.8 million came from fantasy sites and betting, and another $53.8 million from prize pools. Only $15.9 million and $17 million came from ticket sales and merchandise respectively. In this chapter of the plan, you will understand the structure of the business financially by describing its revenues, expenses, capital requirements and cash flow, estimating them for a period of three to five years.

revenue projections

Revenue Assumptions

The business plan financial projections outline that eSports business revenues will come from three main points: direct payments from live streaming services, some live tournaments can attract tens of millions of online spectators; the sale of content rights to broadcasters; and advertising revenues.

budget forecasts

Projecting Expenses

In this section of the business plan there is a complete description of the regular expenses associated to running an eSports company and the strategies to keep major costs in line to maintain the profitability of the business.

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What is a Business Plan?

A Business Plan is a description of the business, market, and expected financials. Plans may be used to increase sales and profitability, outperform competitors, and used to obtain bank loans or investor funding.

For startup founders and small business owners, the Business Plan is a fundamental resource for managing the business and making educated business decisions about the company’s future.

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Business Description

Summary of what it does, how it operates, key staffing and operations procedures, risk & success factors, and management team bios.

Market Research

Third-party information on the market size, key trends, growth rates, and competition both overall and for a specified region.

Financial Projections

Complete financial projections including Revenue, Cost of Goods Sold, and Operating Expenses to produce Profit & Loss statement, Cash Flow statement, and Balance Sheet.

Marketing Plan

Comprehensive plan including market launch, social media, promotional strategies, pricing strategy, and web presence.