Develop 2012: Don't spend money you can't afford, Sports Interactive's Jacobson warns indies

It might sound obvious, but one of the biggest traps new studios can fall into is overspending when the money by whatever means finally starts flowing in.

"Do not spend money you cannot afford to spend," Jacobson said during a Developer Dialogue session with Boss Alien's Jason Avent at Develop Brighton.

"Don't get an overdraft facility. Also, we didn't take bonuses out of the studio for 14 years we invested that money back in the studio."

Money, money, money

For studios lucky enough to secure financial backing early on from outside parties, the risks are just as big as if you win big with a runaway hit.

It's not something Sports Interactive engaged in Jacobson noting "royalties are where it's at" for the Sega-owned studio but plenty of developers that have amassed VC money have ended up slipping up, he suggested.

"Other people get VC money, which is fine," he continued.

"However, if you do get that VC money, spend it on staff rather than yourself. Put that money into the company in case it's not there later."