Financial breakdown of a small company

jsmoke · 29 Mar 2018 at 17:17

LOAM said:
Some of their games have over 1,000,000 downloads on the playstore and all of them have in game purchases.

Yep just noticed you can buy hints on F 47, these micro transaction are probably similar to payday loans whereas it sounds good as your dealing with small numbers(and you don't really take into account the massive interest) but when you add it up, 20 x say 0.80p really brings in the money, pretty sneaky stuff.

Dis86 · 29 Mar 2018 at 17:57

Haggisman said:
£15k? I assume they are either terrible, part time, or fresh out of uni and move on after a year when they realise they can get at least double that elsewhere! I was earning more than that fresh out of college on 1st line support 15 years ago...

Obviously it differs geographically, but in the West Midlands the going rate is ~£30-40k depending on experience (Obviously more if you're a senior dev leading a team, less if you're a trainee/junior with no experience at all)

And nobody uses cheap labour?

On Holiday · 29 Mar 2018 at 18:02

Dis86 said:
And nobody uses cheap labour?

Cheap labours fine but good labourers know they can get paid considerably more elsewhere don't stick around.

Dis86 · 29 Mar 2018 at 18:08

Plenty O'Toole said:
Cheap labours fine but good labourers know they can get paid considerably more elsewhere don't stick around.

It's a small app developer. Do you really think they're going to have the top workers in the field?

On Holiday · 29 Mar 2018 at 18:12

Dis86 said:
It's a small app developer. Do you really think they're going to have the top workers in the field?

No, so they are quite likely

terrible, part time, or fresh out of uni

D.P. · 29 Mar 2018 at 18:15

Plenty O'Toole said:
No, so they are quite likely

Even thresh out of Uni should be on 35K at least unless truly terrible.

BigT · 29 Mar 2018 at 18:16

The 13 staff listed in their credits could quite possibly not be employees. Many small software houses like this might be VC/PE backed and offshore the development to places like Eastern Europe where there is some real talent for this sort of thing. If they do have investors then there's probably a three year time window in which they can make loss after loss until they either make it big or go under. Investors in IT services companies I used to work with expected 1 in 10 investments to make it really big and the remainder split equally between getting out fairly close to break even and going under.

Haggisman · 29 Mar 2018 at 18:53

Dis86 said:
And nobody uses cheap labour?

Cheap labour is usually cheap for a reason, £15k is close enough minimum wage for a full time position, why on earth would a software developer* work for that?

*Or any other profession which requires a reasonable level of skill, education and experience

Dis86 · 29 Mar 2018 at 18:54

Haggisman said:
Cheap labour is usually cheap for a reason, £15k is close enough minimum wage for a full time position, why on earth would a software developer* work for that?

*Or any other profession which requires a reasonable level of skill, education and experience

You've said it yoursel. Reasonable level of skill. Reasonable level of experience.

Why do interns work for free?

Spook187 · 29 Mar 2018 at 19:38

The game industry is money for old rope, unfinished games galore = easy coin move on to the next cut and paste reskin :eek:

jsmoke · 29 Mar 2018 at 19:49

Found some useful info, haven't read it yet but others may want a look. Also seems theres a thing called video games tax relief, maybe other help also.

http://ukie.org.uk/research
http://ukie.org.uk/sites/default/files/UK Games Industry Fact Sheet February 2018.pdf

and

https://www.nesta.org.uk/sites/default/files/map_uk_games_industry_wv.pdf