How to Start an Esports Business in 2021

A step-by-step guide on how to start an esports business in 2021, including an overview of the industry, essential components for success, and key resources.

Introduction

So you want to start an esports business?

With the industry growing at an unprecedented rate, there has never been a better time to get involved in the world of professional gaming.

However, as with any new business venture, there are a number of things you need to consider before taking the plunge.

In this article, we will explore what it takes to start an esports business in 2021, from deciding on your niche to building a winning team.

We will also provide some top tips for making your venture a success.

So, without further ado, let’s get started!

The Business of Esports

The esports industry is growing rapidly and is expected to continue doing so in the coming years. More and more businesses are looking to get involved in the industry, but starting an esports business can be a daunting task. There are a few things you need to keep in mind if you want to start an esports business in 2021. Let’s take a look.

What is an Esports Business?

An esports business is any company that is involved in the development or marketing of esports. This can include game developers, tournament organizers, streaming platforms, and even equipment manufacturers.

The esports industry is still in its early stages, but it is growing rapidly. In 2020, the global esports market was valued at $1.1 billion, and it is expected to grow to $1.8 billion by 2023.

There are many different ways to get involved in the esports industry. Some companies focus on developing games for competitive play, while others organize tournaments and leagues. There are also a number of platforms that stream esports content, and manufacturers that create gaming equipment specifically for professional gamers.

If you’re interested in starting an esports business, there are a few things you need to keep in mind. First, you’ll need to choose a niche within the industry that you’re passionate about. Then, you’ll need to develop a business plan and identify your target market. Finally, you’ll need to build a strong team of professionals who can help you achieve your goals.

If you’re ready to get started in the exciting world of esports, read on for everything you need to know about starting an esports business in 2021!

The Business Model

The business model for esports is still being defined, but there are a few key ways that companies are generating revenue in the space. The three main revenue streams for esports businesses are media rights, sponsorship, and ticketing/merchandise sales.

Media rights refer to the fees paid by broadcasters to show live esports events or pre-recorded content. These deals are typically multi-year contracts worth millions of dollars. For example, ESPN pays $30 million per year to broadcast the League of Legends Championship Series.

Sponsorship is another important revenue stream for esports businesses. Brands pay to have their products featured on teams’ jerseys, at live events, or on digital channels like Twitch. According to Nielsen, the average cost of a one-second sponsorship spot during an esports broadcast was $5,700 in 2019.

Finally, ticketing and merchandise sales are also generating significant revenue for the esports industry. Fans love to show their support for their favorite teams and players by attending live events and buying merchandise. In 2018, global revenues from ticket sales reached $227 million.

The Esports Industry

The esports industry is one of the fastest-growing in the world, with a global audience of nearly half a billion people and expected to grow to over 650 million by 2022. The total value of the esports economy was estimated at $696 million in 2017 and is projected to reach $1.5 billion by 2020.

With such rapid growth, there are plenty of opportunities for entrepreneurs to get involved in the esports industry. But starting an esports business is not without its challenges. In this article, we will explore some of the key considerations for starting an esports business in 2021.

The first step is to identify the opportunity that exists within the esports industry. There are three main areas where businesses can get involved in esports:

1) As a games publisher or developer
2) As a tournament organizer or league operator
3) As a provider of gaming hardware, software, or other services

Each of these options presents different challenges and opportunities. For example, games publishers and developers need to have a strong understanding of the gaming market and what gamers want, while tournament organizers need to be able to identify and attract the best players and teams.

Once you have identified the opportunity that exists for your business, you need to put together a plan for how you will take advantage of it. This will involve everything from identifying your target market and understanding their needs to developing your products or services and marketing them effectively.

If you’re serious about starting an esports business, then 2021 is shaping up to be a great year to do it. With the right opportunity and plan in place, your business can capitalise on the rapid growth of this exciting industry.

Starting Your Esports Business

With the global esports market projected to surpass $1.1 billion by 2022, there’s never been a better time to start an esports business. But where do you begin? In this article, we’ll walk you through everything you need to know to start an esports business in 2021, from choosing a business model to picking the right games to investing in the right technology.

The Planning Process

The planning process is the most important part of starting any business, and an esports business is no different. You need to have a clear understanding of the esports industry, your target market, and your place in it before you can start putting together a successful business plan.

There are a few key questions you need to answer during the planning process:

What kind of esports business do you want to start?

What is your target market?

Who is your competition?

What are your unique selling points?

What are your goals and objectives?

Once you have a good understanding of the answers to these questions, you can start putting together your business plan. If you need help getting started, there are plenty of resources available online, including templates and sample plans.

The Legal Structure

If you’re starting an esports business, one of the first things you need to do is choose a legal structure for your business. This will determine how your business is taxed and how liability is managed.

There are four main types of legal structures for businesses: sole proprietorship, partnership, limited liability company (LLC), and corporation. Each has its own advantages and disadvantages.

Sole Proprietorship: A sole proprietorship is the simplest type of business structure. You are the sole owner and responsible for all aspects of the business, from taxes to liability. The biggest advantage of a sole proprietorship is that it’s easy to set up and manage. The biggest disadvantage is that you are personally liable for all debts and liabilities of the business.

Partnership: A partnership is a business structure in which two or more people share ownership. Partnerships can be either general partnerships or limited partnerships. In a general partnership, all partners are equally liable for the debts and liabilities of the business. In a limited partnership, only one partner (the general partner) is liable for the debts and liabilities of the business; the other partners (limited partners) have limited liability. The biggest advantage of a partnership is that it allows multiple people to pool their resources and talents to start a business. The biggest disadvantage is that partners can have disagreements that can lead to dissolution of the partnership.

Limited Liability Company (LLC): An LLC is a type of legal structure that offers personal liability protection to its owners (called members). LLCs can be either single-member LLCs (owned by one person) or multi-member LLCs (owned by two or more people). The biggest advantage of an LLC is that it offers personal liability protection to its members; the biggest disadvantage is that it can be more expensive to set up than other legal structures.

Corporation: A corporation is a type of legal structure that offers shareholders limited liability protection. Corporations can be either for-profit or nonprofit. The biggest advantage of a corporation is that shareholders have limited liability; the biggest disadvantages are that corporations can be complex and expensive to set up, and they are subject to double taxation (corporate income tax plus shareholder dividend tax).

The Funding Process

There are a few ways to go about funding your esports business. You can look for investors, take out loans, or use your own personal funds.

If you’re looking for investors, you’ll need to put together a pitch deck and present your business idea in a way that will persuade people to invest in your company. You’ll also need to have a solid plan for how you’re going to use the funding and how you’re going to make your investors money.

Taking out loans is another option for funding your business. However, this can be risky, as you’ll need to be able to repay the loan with interest. If you default on the loan, it could ruin your credit and make it difficult to get funding in the future.

Using your own personal funds is often the most risky option, as you’re putting your own money on the line. However, it can also be the most rewarding if your business is successful.

Whichever option you choose, make sure that you have a solid plan for how you’re going to use the funds and how you’re going to make your investors or lenders money.

Conclusion

As you can see, there are many considerations to take into account when starting an esports business. From finding the right game to choose, to building a strong team and marketing your business, there is a lot to think about. However, if you take things one step at a time and put in the hard work required, you can be successful in this rapidly growing industry. We wish you the best of luck in all your future endeavors!