Introduction to online game entrepreneurship failure

Xu yiran, Investment Director

After too many startups, I found it too difficult to start a business. At the beginning, I thought that my luck was a little worse, and the reasons for every failure were different, I experienced a variety of entrepreneurial pains, but later I looked around and started my own business with me and found that this was the case in my entrepreneurial life. Here are some tips for you to share your online game startup failure strategy. People who have failed to start a business may feel "worried, if you have never experienced any failures so far, you may feel the same way. You should be careful. I hope you can learn from them. In addition, please remember: The success stories you see every day are just a few of the countless entrepreneurs, the countless 99.9% cases of entrepreneurial failures that have been drowned by the sea have no chance to get into your sight through various media. If you only think that entrepreneurship is so simple when you see some seemingly simple successes, you are wrong.

I started to study the free engine ten years ago. What TALK and OGIE are there for a long time, but are there any Chinese people who are using it all by foreigners, do Chinese people have a complete solution and share it with you? No. The Chinese do not seem to have such a ethos,Everyone is building cars behind closed doorsSo a lot of small teams are crying when I see them. I said you are not doing this well, just like a trap in front of you. Someone fell into it and fell into tears, but you climbed out, what's important is whether you have set up a sign next to this trap and tell everyone that it is a trap. No, I have never done it, but now I realize that I am writing this blog. Chinese people do not have this concept, including the company itself. You can see that the company has several complete knowledge bases. Why did I succeed, why did I fail, and every new employee reads it again, yes? I have never heard of it. Our Planning and Research Institute is doing this thing. It was not long before. I hope you will have a kind of mentality of communication, experience, and communication.

Financing Problems

　　Venture capital is only icing on the cake..If you do not have ready-made products that have been operating in the market and are profitable, or your team is very famous, you have created brilliant success stories before, venture capital will not consider investing in you. Please do not waste time.. If your team has problems and wants to ask VC for money, please do not waste time. VC will not help you at this time. You should have seen the occurrence of this financial crisis. Many VC companies are forcing the company to close cash and leave. Don't forget that most of them are in an unlimited partnership and the Fund has lost money, the partner has to pay for it!

For special situations in the gaming industry,Venture capital generally does not like investing in pure R & D companiesBecause of the long R & D time and high risks, the income ratio is far lower than that of operators. WhileIt is very difficult for developers to transform into operators, and the required funds and experience far surpass those of pure developers., SoThe real investment rate for carriers is also low..

There are many so-called "angel investors" in the market, which may be willing to invest in R & D teams in earlier stages. However, they are often not players in the gaming industry, and they are not well-funded. Because they know little about games and are cautious about investment in industries that they don't understand, even if they have ample funds, they will not really make full efforts (of course, on the surface, they will always look very confident ), the first money they have given you is definitely not enough for you to develop the game securely and steadily. If you encounter any problems, you will immediately retreat. Then you will ride the tiger,If you don't have any money, you will die. refinancing will significantly dilute the team's shares.And the newVC doesn't want to comment on a team who doesn't know how to play games, or who doesn't like games.. As I will mention below, even if such Angel capital is obtained at the beginning, there will often be many conflicts in future cooperation, resulting in a project failure probability of almost 100%. So although I am also an angel myself, I strongly suggest:Don't take any money from angels. There is only one step between them and the devil.!

Investor Problems

Management conflict

Most early angel investors, even those in the gaming industry, are often not professional enough. They often know little about the game, but think they are very familiar with it, they will participate in product management and design decisions too much, or blindly believe in the "trust" of a self-called expert, and place him in the team for daily management or monitoring, the common mistakes these people make are: making ridiculous so-called game ideas, believing that they are the so-called game characteristics, has actually become the culprit of project failure.

　　Over-emphasizing some meaningless details and ignoring the more important direction, unbalanced team energy allocation and long development cycle. Investors often stick to the "probe" that can be said and liked by leaders, or simply a relative of investors. A typical situation is that they know how to play games all day long, in fact, children who do not understand things have poor real working ability and management ability. They blindly cater to non-professional ideas of investors and often have serious management conflicts with the team, in addition, each newly recruited person has to look over the content, which often leads to great internal conflicts in the team.

Investors cannot withstand setbacks and retreat

Every talent and team has his own growth process. Even a talented team with successful experience will inevitably make mistakes in game design or development. WhileThe vast majority of investors, including many in the industry, do not have enough patience with the teamWhen the product development encounters difficulties, or after the product is launched and operated, the investment will be immediately abandoned if the problem is not satisfactory. ActuallyInvestors usually invest in multiple projects at the same time. When one of the projects encounters difficulties, they stop immediately and leave the resources to other projects.. This is actually the most common investment strategy, because for investors, it can spread risks and avoid unilateral expansion of losses. But for you, you have no chance to spread risks, if something goes wrong, there is only one dead end.

Withdrawal due to investors' own reasons

Investors often have their own main business, that is, the so-called cash bull. Without such cash bull, there is no "idle money" for investment. However, when their main business encounters difficulties, they will not hesitate to cut off non-main business investment, in fact, some investors simply borrow money from the financial market. Once the market is sluggish, it is too late to secure your team, no matter how smooth the product is, he will adopt the strategy of losing the car and saving the handsome person, so he can sell you or close the door directly. Don't be happy if you can sell it. The new owners who are willing to take advantage of the opportunity to cut prices at this time will not sell you any more in the future. Someone may say, "there is a contract! How can he withdraw the funds at will ?" Please allow me to say something very sad:The contract is a waste of paper at this time. When you fail to get the company's salary, do you still have money to go to court? Even if you can resist it, other people in your team will not be able to resist it. I 've been waiting for a job!

Team issues

Insufficient management experience

Everyone with entrepreneurial enthusiasm knows how to play games? Most of you have some special skills for designing and making games, so you are not necessarily a good manager. However, once you start a business, your pain will come along. You find that you are not playing games for more than 80% of the time every day, instead, we are dealing with things that have nothing to do with specific game design and production: Looking for investment through various channels, and writing a large amount of useful information to the layman every day, and have to face all kinds of fake experts and real layers, fake friends and real scammers, fake investment and real intermediary, fake investors with money and real money, etc.

Find someone through various channels, to persuade some experts who can help your team to join the team to the next level, and secretly pull gangs in the company during work, working late into the night after work; in factExperts are all at heartMaybe I have prepared several entrepreneurial plans at the same time, and whoever gets the money will go with me. On the surface, I have told you that you have worked hard to draw a pie for the future, promise a high salary for the future, give shares, and give options, they were given all the good conditions, but they had little left. As a result, the conditions given by others were better. Finally, they decided to leave with others.

It is easy to set up a team. If you have a little money, you can send it to everyone. If you have a hard time, you don't get the money or get the money at least to boost morale. As a result, he still plays a big game and does not do well in his work. He complained from day to night that he was too tired to get little work. As a result, although you are the general manager in name and you give him money, he is actually the same as your leader, it is harder to serve than leaders. It's easy for a few people to get together. Everyone is a cool man and nobody looks down on it. In addition, planning and procedural art are inherently born to be the opposite. Basically, those who have never cooperated before will surely get together, I have worked with each other in the past. It may be because I used to work with my company boss to pay for everyone, and there are not so many interests related to each other. Now I 've had a hard time together and my interests have been bound together, if there is a small conflict, it is easy to turn into a big conflict that people do not do things.

It's easy to find a start-up fund. You can set up a company. The headache is still coming soon! Rent a house and buy machines. In order to make pictures cheap, you can bargain with vendors of various small businesses. For overseas investment, an offshore company should be set up. for fear of being fooled, the documents that investors ask lawyers to do should also be reviewed by acquaintances who understand the law. They can all be in English, hundreds of pages, not understanding anyone. We also need to engage in domestic companies, change US dollars, get registered funds, run state and local taxes, apply for high-tech enterprises for tax avoidance, and implement dual-soft certification...It's all over the past six months.. What? Ask an administrative cashier and so on and let them do it? Which of the following is not important to you? If a file is wrong, you will lose your life. If you find someone with a monthly salary of more than 1000, you will be relieved?

It was easy for everyone to work well. After more than half a year, I found that one of the core members was not good enough, how can I find it after a while? The shares have already been given, and a lot of documents have their signatures. Do you want him to make the shares easy? In the shareholder list, I will leave a person who has gone to a competitor's company. How can you find another investment in the future? Now, finding someone to replace him will basically be paid for his previous work, and new recruits will have to work with the team again. How can there be so much time and money?

Insufficient technical experience

Because there are too many technical dead products, 80% of the products have technical problems. Even experienced people, do you dare say that your game is exactly the same as what he did before? Then you are enough for the shanzhai. It's no wonder that investors with no brains are willing to invest in you! Even if it is a pure shanzhai, do you dare say that your program has done all the technologies required for online games? Do you know all Kaner and Ray? The entire game is a chain, with a broken ring. It is useless for other rings on the chain, and it has to be broken.

　　You are not a shanzhai. Are you innovative? Okay, that's the risk.,Innovative ideas often create new technical challenges, bring about various technical uncertainties, and lead to insurmountable technical barriers.. The most annoying thing is that, in fact, many teams that have failed in the past have tried these ideas for a long time. Of course, people are not fools. This industry is so profitable and the elites are all here, the innovative people you can think of have long been thinking about, and most of your so-called innovations actually refer to foreign standalone games. Isn't it? If you did not do anything, you did it. You are still proud of it, but it is not because people did not think about it, it is because people did not succeed in the experiment, and the technology is not available,You don't know.. Some people often tell me that, no matter how hard it is to fight, the lessons learned from failure are also beneficial. Is there any valuable experience and lessons you have learned in this way? Can you ensure that future innovations do not face new technical risks?

Insufficient planning experience

We won't even talk about the planning of shanzhai. Shouldn't they get the investment, right? You are competent, and you are innovative. You are lucky to be killed by planning, because after all, your technology and art have come, it's not easy for you to come up with so many innovative ideas. But can gamers really accept your new design? Is your new design really seamless? Do you know how players will play your game before going online? What will happen when many people play together? Are you sure you know? You think you are smarter than the players, but after the actual online operation, you often find that the players are much smarter than you. I found it wrong. Change it. do players give you a chance to change it? Those who have been persecuted by you are gone, and those who have stayed with the vested interests have been deprived of the benefits after the change. What should I do now? Another promotion expense should be invested to attract new players? This time, you need more money, because you have a bad reputation, right? But do your investors and operators have such great endurance?

Insufficient artistic skills

I don't hear much about art, but I can't take it lightly.The art in your team is a very ambitious person. Otherwise, Is it difficult for people to stay in the company and get a salary? Why should they start a business with you?? However, art definitely wants a good visual effect. Otherwise, what is its value? (By The Way, investors tend to like reading pictures because they do not understand code and numerical planning)

　　In order to make the art effect better, your technology and planning will carry a lot of burden, The client specification is one litre and then upgraded, and even the most advanced machines do not run. Your technology will tell you: It doesn't matter. It's now in the development stage and focuses on implementing functions. It hasn't been optimized yet. It will be much better after optimization is done. Or: all these special effects can be switched ON and OFF on low-end machines to ensure smooth operation. You will have to believe it. What is the final result? He has never done optimization at all,There are so many beautiful optimization spaces?? They will say, "These models have too many faces !" "How can I think of him using so many textures on monsters and scenes !", When the development is complete and the test is complete, you are eager to find a low-end machine and turn off the special effects and switches? Your art is crying: Is this my game? You cried too: Didn't you seem to have been running fast? In the past, when the program was developed, it was a good machine, and I never tried many people on the same screen. What should I do now? Art redo? Program substitution?

Difficult recruitment

It's not enough to have a few of your core experts working together. An online game 3 ~ Can five people do this? Do you have to recruit? Headhunting is definitely not enough, and recruitment websites are all new players. Well, they just collected it from the original company. But when you leave the original company, the people will not guard you? AndAnyone with entrepreneurial sentiments has been swept away for N times.Are you sure you want to share it?Ordinary employees want to work stably or make money.You are a new small company. You are not stable, so you have to pay a high salary? There is a high salary on the left and a high salary on the other. You have to pay more insurance and money than you do. Why don't you worry about investors? The work is very common. It's time to get off work and work normally. It's time to ask for leave and ask for leave. Do you want to open it? Have you read the new labor law? So many lawsuits have you ever seen the company win? Several of my friends told me the same thing: "After reading the new Labor Law, I shut down my company and I am working !". Don't get fired, you can't teach him well, but it's time you don't talk about it. You have to pay for the time he has learned and the time he has learned to redo his jobs. The whole process is the fastest, good, and cheap.Even if you are covered in iron, you can twist a few nails.?

Insufficient resources cause too many trade-offs

Startup teams often have to make a lot of trade-offs when designing products because of funds, number of teams, and abilities. There is a big gap between the products they make and their ideals, A good idea with great potential has not been put into play. HoweverCan a game that has almost been mediocre come to the fore in today's highly competitive market?? A large company may spend more than a few years on products. You are a small company that has made so many trade-offs... I have been working hard for a year and a half. Looking back at my original ideas and looking at my current semi-finished products, I don't know what I am doing, not just you, other members of your team are also discouraged.

Problems related to carriers

Unable to find a suitable agent, resulting in capital chain break

The painstaking efforts have finally been made (of course, this year, the most important features of player interaction and payment, such as battle, have not been done yet, because there is really no money and no morale to continue), your investors are good, all the difficulties have persisted, not so many trade-offs, the product looks good, now you are looking for a carrier. HoweverEvery operator in today's market is developing its own gameIn my words, all the products they develop are "Sons". If you want them to represent your products, you must be "Sons ", they must not only have outstanding characteristics but also not conflict with their "Sons. Even if all the conditions are met, He will beat your bid. Sometimes he may even simply use your ideas for his son.

Poor agent strength

Even if someone is willing to operate a company that is better than signing it out, find a new operating company that has no experience, or a company that has never been defeated before, after all, people say they want to focus on my products like their sons. However, such companies are often unable to make operations well due to factors such as capital strength, poor management capabilities, and limited operation experience, when the operation fails, or the two of you cry together, or he ran to someone else to give birth to another son, the responsibility for the final failure must be yours, maybe the contract will not be ruined, the product will continue to be held, the server will continue to be open, and you will certainly not be given to you if you earn much money. You want to switch your hands and sign it with others.-Of course, you have to pay back the copyright first! He has to make up for his losses! Is there any money for you?

Failed operation due to Agent delay or no focus

I finally signed it to a big company. Don't be too happy. Maybe your pain is just getting started! There are so many sons in a big company. You are just a godson. Even if you are a godson, you may not be worthy of the number, because they still have godsons who can speak foreign languages, people are worth more than you (although you know that they are actually rubbish ). People will pick up the right sides of your product. Didn't you say you should fully cooperate with the operation? The operator has experience. Do you dare not change it if someone says you want to change it? In fact, you know that the product manager they sent is an outstanding little boy. Today, I often say that I want to change my mind. Tomorrow I will change my mind and say that I want to change my mind. But you still have to treat him as a donor, why? Most of the copyright money will be paid after it is officially launched for operation. At this time, you don't have much money to pay for it. Do you want to pay for it?

However, when everything is ready for you, you are in conflict with the launch time of another son. No way. People are important. You have to give up and wait, isn't there a lot to change? Some companies are even bad. If you know that your capital turnover is not working properly, you may deliberately delay it at this time and choose not to launch it for you for various reasons (Don't submit a contract with me. It's all the last time you went to the court to sue your carrier. You're afraid you're dead late.?). What should I do if I am in a hurry? You come to the operator to discuss: Do you want to invest some funds for our staff? Well, what are you waiting for? re-sign the contract and re-score the shares in the company. Do you have a bargaining chip at this time? Hey, hey, you can do it...

Failed to forcibly transform itself into a carrier

We can't trust them, or we can operate them on our own! Your investors are brave enough to come up with another 10 million yuan for our transformation. Isn't that just the operators who like their own products? Two birds in one! First, do you understand operations? Are you looking for the Operation director? Are you going to give the shares? Do investors need to invest more in shares? How many shares do you have? What is the company's say? You also put your life, you have worked hard for two years baby products to a group of strangers, right? Can they operate products? What's amazing about Shi Yuzhu's push team? We can recruit 3000 people to push the team... There are several methods of operation... (Three thousand words are omitted here ).

Benefits fulfillment

Let's assume that you have all the above things. It's time to relax when the product is successfully launched and profitable? But let me help you calculate an account:As an independent development company, products can only be divided into about 20% after being signed to the operator.,As a core entrepreneurial team, after the product is listed, it can only take up a small portion of the development company's shares, and most of the shares have been owned by investors.,According to the proportion of shares, only less than 10% of the income can be allocated.. Investors are also capitalists, and they often have to do whatever they want to maximize their own interests. Remember: after all, your salary is paid by him. He is strong and you are weak, it's just a natural reaction to squeeze you. They often use various means to plunder the wealth you deserve, which makes it difficult or even impossible for you to obtain the actual benefits at last. I am not very professional in specific means. Please forgive me for not listing them one by one, at least the following methods are common:

　　Investors have the right not to pay dividends, not to go public or to sell, but also to transfer profits through various complicated accounting methods. In the end, the company actually has no profit.Haha.Various complicated agreements are signed during the listing or sale process, and investors leave the market. However, the benefits that entrepreneurs deserve are bound for a long time, so that entrepreneurs will not actually get the real benefits for a long time.. If you think about it, development will be 2 ~ In three years, it will take about one year to talk about proxy going online. It will take at least two to three years for a company to go public or sell it ~ Three years later, we have to bind you to continue three years to get real benefits. During this period, I still don't know how many changes will happen. Will you still be happy with your success? What have you learned about law, finance, finance, accounting, and taxation ...?