If you are a small studio with 0 income, raise some money by getting the team to do a few small web design/database or work for hire projects for a month or two and then use that to fund the work on a game for a month or two.
I know a few people who are using this model right now to bootstrap things.[/quote:a0214dfe3d]
Just to point out, that this is what we tried to do also. We learned a huge amount from setting up a games company, unfortunately most of it is what NOT to do. While this may be a good idea in theory, we found ourselves getting dragged into project after project with no time for our own stuff. Worse yet we even agreed to a project with a payment of "half the profits". NEVER EVER TAKE THIS PAYMENT PLAN!!!!
I don’t mean to come across as overly negative, I just don’t want people making the same mistakes we did!