How to draw up the online casino business plan
Before starting a new business, every potential owner has to pay attention to the careful planning. The key document used in this case is called the business plan. This is required in order to make a clear vision of the whole scope of undertaking and to provide the precise calculations on the project.
The online casino business creation involves drawing up a plan with some peculiar features of the gambling industry. Naturally, the specifics of a web gaming platform shall be considered for a case of the online casino business plan.
However, the generic templates used for any other type of business plan may be taken to develop a gaming platform project.
It shall consist of the following chapters: the project summary, products listing, company synopsis, marketing section, competitive tactics, expansion plan, exit strategy, staffing, finance, and addendums.
How to start drawing up the online casino business plan
To begin with, consider and briefly describe all the key data on the project you are going to launch. What are the services that your company provides to the customers? What is the business model technology used to achieve this task?
1. Project summary
The business plan shall start from this chapter in order to briefly present the key aspects, however, it shall be developed after all the others. Project summary contains consolidated data on the project. It is needed to appear in the beginning in order to introduce the basic essence of the case to all those people you will present your online casino business plan.
The following key items shall be indicated:
- the purpose;
- mission and vision;
- roadmap outline;
The project summary shall include the provision of the general purpose regarding the necessity to raise a certain amount of funds with a view to open a web-casino. For the detailed insight, it shall proceed with the particular objectives derived from this purpose.
Mission and vision are also obligatory elements for this chapter. The mission is determined based on comprehension of methods and ways to achieve the preset purposes. The vision involves the general definition of the final point or the desired destination of the business to be achieved.
The business plan is commonly developed for the minimum time period of three years. For this period, the milestones shall be also developed for easy tracking the progress.
2. Company synopsis
The company synopsis is presented to provide the basic issues regarding the legal and organizational features.
These issues shall include the following:
- authorized capital stock;
- license and permissions;
- legal status of the company;
- organizational structure;
- current stage of business.
An online casino can have various forms of organization and legal provisions depending on a country. As for the cost of a license, it may vary in the range of 10 – 50 thousand dollars. The lawyer consultancy can help to resolve these important aspects.
The separate paragraph of the company summary shall be the exit strategy. It outlines possible options and conditions when an investor decides to leave the business selling off his share in it. All the relevant terms and conditions shall be presented.
The relevant documental proofs for all these basic features may be provided in the last chapter, the Addendum.
3. Business model
This is a place to analyze the business model underlying your online casino project. This industry-specific business is to be built on a financial difference between the deposits made by the customers with a view to enlarge them in a way of getting winnings produced by the random number generator algorithms.
As usual, the overall amount of people' contributions significantly exceed the payouts which go to the individual winners. Casino services constitute a specific type of entertainment regarding the feeling of thrilling excitement while gambling.
This chapter implies to perform general industry outlook and to set a target niche for your business. The online casino business niche is the online e-Business.
Besides, the following reasoning shall be justified:
- Is the gambling acceptable in the society of your country?
- Does this industry rapidly develop, are there any technology advances available?
- Which opportunities do you see?
The analysis of the market situation in the country presupposes identification of the current economy phase, recession or a development. Demographic data and the mentality characteristics are also important in order to understand the potential number of customers.
The detailed marketing plan shall state all the relevant options: pricing, positioning, methods of promotion.
The targeted customer category to be identified. The business plan author shall describe an average client, indicating age, sex, income strata belonging, internet connection conditions etc.
The average user shall be identified by the following characteristics:
- the yearly income of $50–60 thousand;
- age range covers the range within 18–45 years;
- high-speed web connection is available;
- always spending $50–150 per one online casino visit.
Elaborating on the detailed image of a potential user, the gambling project owner will see the options to propose on the market in order to satisfy the demands of the most proper and promising group of gamblers.
Another important point to determine is the issue of the objectives, which may include various options:
- Giving promotional incentives to visit the casino platform.
- Retaining bonuses.
- Credits for the involvement of newcomers.
That involves a task you set when elaborating the detailed marketing planning. The purpose implies to expand the target user category.
To make a selection of competitive tactics, analyze your competitors. Thinking about the benefits proposed to your target category brings to the methods to be employed when implementing any type of competitive tactics. This is the comprehensive and integral system of methods aimed to attract maximum users to your products consumption and to win a better position on the market.
Marketing strategy tools
There is a huge number of different marketing strategy tools. For example, SEO, which is enough popular and quite effective solution.
The aim is to generate an advertising effect that results in the site traffic increase. The strategy shall incorporate the SEO tools and PPC promotion. An engaged web promotion company provides links and relevant keywords on the target site.
Thus, when surfing Google to open any online gaming resource, the promoted website will be shown up on the first page. The search engines are running on the basis of complex algorithms to identify the relevance of a resource regarding the particular keywords.
This methodology is expensive, but the outcomes can be really effective if this promotion system is properly implemented.
Besides, the other promotion tools include various methods of advertising: social media marketing, newsletters, affiliate programs etc. You may apply the maximum of them or to be limited to one or two that you consider as the most effective ones.
The expansion plan presupposes expansion of your business when reaching the significant results. Any success shall not come unexpectedly. All potential opportunities for tomorrow shall be considered in your business plan today.
This chapter shows the personnel to employ for your project. Online casino staff presupposes management and operating teams. The operating personnel is expected to provide 24-hours technical support, while the management team arranges different operative solutions.
The key questions are the following: how many persons to take and what positions they will hold. A chief administrator, cashier, shift manager and other positions are commonly associated with any online casino project.
Besides, each position shall have the relevant job descriptions and employment requirements. For example, it is very important to identify experience and education levels for employees, which they shall possess.
This responsible part of a business plan shall include the information on the funds to be raised, as well as on the main source of these funds, indicating the investor’s interest rate to be received through the determined stages of financing.
This part shall state the sums of money with a breakdown into the budgeting categories.
The specifics of the gaming products purchases presupposes some points to learn before making the particular decisions.
- When ordering a platform with the integrated software, an owner has a significant economic benefit. One should remember that generally customized solutions are more expensive than those provided for the ready-made products.
- The products bought directly from the developers are calculated being equal to a half a million dollars but in case of a partnership with a mediator company, it can be rented for the cost of several tens and up to hundreds of thousands of dollars.
- The expenses needed to order the website domain and hosting shall be also included. The issue of security provisions for the platform software contributes to the total amount but it shall be also resolved.
- The services of the gaming software integration and the website design are also expensive, thus the financial plan shall provide corresponding detailed budgeting.
- Payment systems constitute an integral part of any online casino. Visa MasterCard, Western Union, Skrill, Neteller, Click2pay and many other popular systems are to be included.
- Another part of the financing is the incomes forecast for 3 years to anticipate the levels of the future profits and to manage the financial flows with maximum efficiency.
- Incomes, operating expenditures, taxes, net profits shall be provided in a form of charts to create the precise visibility.
When developing the financial chapter, involve the relevant specialists: an accountant, an economist or an auditor to get correct calculations and forecasts.
The online casino business plan shall have the addendums if they are logically required.
Business plan sample
You can find a huge number of the business plan samples on the Internet. Having a template downloaded, apply the specifics of the online casino for producing the effective business plan for your business.
Opening online casino with the Online Casino Market
For getting more detailed data on the online casino business plan, contact the specialists of the Online Casino Market for consultancy. The options of purchasing a customized turnkey project of the online casino or ordering its development from scratch according to the customers’ individual preferences are also available.