Owning Companies

Day 1,533, 19:37 Published in Canada USA by Archaean

Owning companies is the key to becoming self-sufficient in eRepublik. The questions then become:
- Which companies to own?
- What kind of revenue can I expect?
- How many should I employ?

Which Companies to Own
At the beginning the best companies to own are raw materials companies for the following reasons:
- They require nothing to produce (i.e.: they do not require raw materials as input)
- They are cheap to own

A saltpeter mine or cattle farm cost 8500 local currency to purchase (for Canada that’s equivalent to ~6.5 gold). Based on today’s wages (~220CAD/day) you can earn 8500 in 38 days. Using extra income such as gold earned from leveling up or from the hard worker it is possible to afford a saltpeter mine much sooner.

Alternatively, a weapon or food factory cost 10 gold to start (~12,800CAD) and generate less income unless upgraded to level 2 or higher.

Revenue
A saltpeter mine or cattle farm cost 8500CAD and produces 280 units each day, which retail today for ~0.30CAD a unit. It costs 10 health to work (~3CAD), netting a profit of ~81CAD a shift.

Alternatively, the oil rig or fruit orchard cost 3000CAD and produce 112 units a day, netting ~30.6CAD a shift.

When considering oil/fruit vs. saltpeter/cattle, the oil/fruit have a slightly better return given the initial investment, but will more quickly hit a food limit – meaning you won’t easily be able to consume enough food to be able to work in all your companies. This can be a real issue when attempting to complete the daily mission (of 25 kills a day); therefore I strongly recommend cattle farms and saltpeter mines.

Virtuous Cycle
Once you own one saltpeter mine you’re earning 300CAD/day (81 from working in the mine + wages of 220CAD), meaning your next saltpeter mine can be purchased in 28 days. Your 3rd mine can be purchased in just 22 days, your 4th in just 18 days, your 5th in 15 days, etc. Once you hit 20 saltpeter mines you can build them at the rate better than one every 5 days (of course, the same holds true for cattle).

How Many Should I Employ
The short answer is zero – employ no one. Unless you have either a Q5 or Q6 weapon/food company (and now, even a Q5 is hardly profitable), you can’t afford the wages. Think about it, the saltpeter only sells for 84CAD – how can you afford to pay someone 220CAD to produce it? The nice thing about saltpeter mines and cattle farms is that they add to your employment capacity, which will come in handy later.

So for now: work as an employee, work as a manager, but don’t employ anyone.