It is understandable that the virtual world business plan can feel like an abstract document. Putting into words and figures what has been mostly just an idea is its own challenge, but when the business model itself involves the surreal, it can be even tougher. Whether you're building a virtual world for a multiplayer online game or to roll out a new e-commerce shopping mall, start with what can be grasped most easily. What are your development costs? How long will the software be in progress? Do you have developers already lined up? If you have made storyboards or have sketches or anything else tangible, build those into the business plan. Other things to help your investors "see" the world:
• Who is your target user? What are they doing in the world?
• How can you promote this environment both online and offline?
• How much money do you figure the development will require?
• Can you show your capital needs by category?
• When do you project break-even? Is the virtual world subscription-based, or if not, how do you derive revenues?
Look to the financial model to help you answer some of the questions that investors will commonly ask. You should be able to show break-even and a sensitivity analysis demonstrating the impact of a variance in your projected revenues (15-25 percent is typical). The model should include a balance sheet and cash flow based on projected revenues, profit and loss, and employment timelines. If your virtual world lacks this level of detail, look for competitive comparables and use industry average figures wherever possible. Need support in this process, or want to call in the professionals to get it done? MasterPlans has worked on a wide range of virtual environment projects and has the expertise required to bring a new world to life on paper and in Excel. Call 877-453-2011 today for a free quote on your project.
