24 year old entrepreneur Peter Zaborszky turns to profit when the credit crunch was in full swing
24 year old entrepreneur Peter Zaborszky founded Renegade Games Limited just when the credit crunch was in full swing, February 2009, and managed to turn £30,000 angel investment into £50,000 profit in the first year.
Businesses closing, mortgage defaults, emptying high streets, the credit crunch has affected millions of people in Britain. But fighting entrepreneurs still try to start businesses, where ambition outweighs the difficulties of the current times.
Pete Zaborszky started a joint venture with Fubra Limited in February 2009, aiming to build a business around internet games. The experience both parties bought to the table was useful, Peter built an internet game aged 17, while Fubra built a media company based on useful websites with useful content. The company was started with angel
investment of £30,000 from Fubra.
The strategy employed by Pete was buying websites which already had revenue, and using the revenue from these to build the business, employ staff and build new games. Initially the company bought an existing game, Planetarion, one of the classic text-based games on the internet, and Peter’s older game was restarted. This presented a foundation in terms of revenue that the business could be built on. This revenue was cleverly used by Peter to build capital in the business, and await further purchases that could be useful.
A few months later, an internet games directory was acquired, that almost overnight doubled it’s revenue by optimising the advertising on the website. This gave Peter the self confidence to continue with the strategy decided on earlier, as it was clearly working.
Speaking about what he did to achieve these fantastic results, Pete Zaborszky said “Most websites do not think about the customer. Many website owners tend to be lazy, and do not give their assets the attention they need. Just by working hard, and thinking about the customer, I was able to dramatically improve results. Similar to Dragon’s Den star
Theo Paphitis and Ryman’s, just by optimising operations and considering what customers want, a business can be turned around.”
Building on this, as well as profits from the first two assets, Pete decided to take a large risk, and using a mixture of capital accumulated in the business and debt, acquired a much larger gaming website. The deal struck was a good one, the debt repayments could be financed from the existing income from the website, and any increase in revenues was profit for Renegade Games. Using the same strategies, a 50% increase in revenue could be achieved on this website as well.
Fubra co-founder Paul Maunders explains, “We were impressed by Pete’s ability to use our initial investment to acquire and improve a number of small websites. His improvements significantly increased their earnings and cash flow in just a few months, which gave us the confidence to loan him further funds to apply his model to larger sites.”
Pete has plans to use his existing assets as advertising tools for new game he is developing, as well as increase traffic and revenue from them substantially. Peter believes he can achieve profits of £100,000 next year, without any additional financing.