4. Business Management part two of two
Day 567, 14:25
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Published in Australia 
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by
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by The Old Oak
4. Business Management part two of two
i- recruiting, supplies and selling
ii- finances
i- recruiting, supplies and selling
Depending on the country your company is implanted in, wages might be high or low. It is usually a good idea to stay away from wage wars as you might end up paying a lot more than your company can afford.
Try working out how much you can afford to pay employees in relation with their skill and productivity to break even (neither lose nor make money). Their skill should go up, so you'll start making profits. It is also a good idea to keep inactive/dead employees as they will improve your company productivity at no extra cost, as long as you stay at or under the max productivity level. Finally, you cannot change employees wage for three days after their joining your company. You can however fire them in that interval.
If one of the other companies on your market keeps undercutting you, you can push them out of business by placing medium offers undercutting him. The goal is to get your competition to undercut you until they start selling for a loss and eventually go bankrupt. Sweet, isn't it?
In the raw material industry, as you will need to go q2 or higher, it is usually not cost effective to higher low skilled workers as they already have low wellness and the toll of one or more extra wellness points lost every day can really cut your benefits.
As for supplies, you can buy them locally, or travel with your organisation to buy cheaper supplies abroad. There is one way to try and put pressure on your suppliers. To do so, buy not the lowest, but the second lowest offer. The company selling at the lowest price might push their prices down further to sell.
Finally, do not sell for a loss unless you have no other option. And if you're selling for a loss, you will need to cut your expenses somewhere else.
ii- finances
A final, incomplete note on finance.
When you invest money in your company, everything is fine, however, when you collect profits, you will lose 10% of the money through taxation. To avoid that, you can use the monetary market to transfer money free of charges. Let's have a look at an example. Your eFrench company has 100FRF you'd like to use to buy some nice weaponry. To get it out, you would post an offer using your organisation account (you can select it once in the monetary market in the top right section under the big blue bar). The offer should be 0.01gold, 1gold = 10000FRF (selling gold, buying FRF). You then select your company account, display all offer selling FRF for gold, find your offer and buy the 0.001gold. Voila, easy!
You can also speculate on the monetary market with your company account although you can't open accounts in foreign currencies.
It is usually better to buy a company rather than set it up, as you can find some pretty good offers. This can be a good a good, although risky business plan : buying cheap companies and selling them on at a higher price.
Last but not least, let's quickly review the possibility of "unusual" businesses. One good example, although extremely hard to actually set up is banks. Banks simply take deposits from people and use them it to invest or speculate and pay back the money after a set period of time with added interest. Also, you can establish yourself as a trader or set up a cooperation by selling shares or by sharing an organisation with business partners. Finally, you can look for cheap companies that you can sell on later for more.
http://tinyurl.com/qa35ez>Table of Contents
http://tinyurl.com/m4ju6b>Back to chapter five
i- recruiting, supplies and selling
ii- finances
i- recruiting, supplies and selling
Depending on the country your company is implanted in, wages might be high or low. It is usually a good idea to stay away from wage wars as you might end up paying a lot more than your company can afford.
Try working out how much you can afford to pay employees in relation with their skill and productivity to break even (neither lose nor make money). Their skill should go up, so you'll start making profits. It is also a good idea to keep inactive/dead employees as they will improve your company productivity at no extra cost, as long as you stay at or under the max productivity level. Finally, you cannot change employees wage for three days after their joining your company. You can however fire them in that interval.
If one of the other companies on your market keeps undercutting you, you can push them out of business by placing medium offers undercutting him. The goal is to get your competition to undercut you until they start selling for a loss and eventually go bankrupt. Sweet, isn't it?
😉
In the raw material industry, as you will need to go q2 or higher, it is usually not cost effective to higher low skilled workers as they already have low wellness and the toll of one or more extra wellness points lost every day can really cut your benefits.
As for supplies, you can buy them locally, or travel with your organisation to buy cheaper supplies abroad. There is one way to try and put pressure on your suppliers. To do so, buy not the lowest, but the second lowest offer. The company selling at the lowest price might push their prices down further to sell.
Finally, do not sell for a loss unless you have no other option. And if you're selling for a loss, you will need to cut your expenses somewhere else.
ii- finances
A final, incomplete note on finance.
When you invest money in your company, everything is fine, however, when you collect profits, you will lose 10% of the money through taxation. To avoid that, you can use the monetary market to transfer money free of charges. Let's have a look at an example. Your eFrench company has 100FRF you'd like to use to buy some nice weaponry. To get it out, you would post an offer using your organisation account (you can select it once in the monetary market in the top right section under the big blue bar). The offer should be 0.01gold, 1gold = 10000FRF (selling gold, buying FRF). You then select your company account, display all offer selling FRF for gold, find your offer and buy the 0.001gold. Voila, easy!
You can also speculate on the monetary market with your company account although you can't open accounts in foreign currencies.
It is usually better to buy a company rather than set it up, as you can find some pretty good offers. This can be a good a good, although risky business plan : buying cheap companies and selling them on at a higher price.
Last but not least, let's quickly review the possibility of "unusual" businesses. One good example, although extremely hard to actually set up is banks. Banks simply take deposits from people and use them it to invest or speculate and pay back the money after a set period of time with added interest. Also, you can establish yourself as a trader or set up a cooperation by selling shares or by sharing an organisation with business partners. Finally, you can look for cheap companies that you can sell on later for more.
http://tinyurl.com/qa35ez>Table of Contents
http://tinyurl.com/m4ju6b>Back to chapter five
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