[TUTORIAL] The Basics – Business Infrastructure

Day 601, 17:48 • Published in USA Brazil • by Dio Sulejmani

We all know that starting a business is the dream of most of the eCitizens. Create, Develop, Make your corporation reach higher heights and finally become a mega-entrepreneur.

The aim of this article is to show you, newbies to this business world, the basics of analysing and running your own business.

Infrastructure:

-Logistic;
-Market;
-Starting Capital and Monetary Flux;
-Competitive Price vs Competition;
-Workers;
-Demand;
-Profit VS Income;
-GM Records V 3.0

Market is the place where economical agents trade their goods for money or another goods. Before opening a company in some region you must analyze all the points already quoted.

First of all you should analyze if there is a demand for the good you intend to produce and a healthy competition; the one that cannot harm your profits. The specialization level of the workers must be taken in account when choosing a region to start your first business. Countries that have lots of wars tend to have a high wellness level, what affects directly the production of your company. Another point that you must study is the salaries paid in the region you're analyzing. You must be able to pay good, but low, wages, so that you wont over exceed your starting budget.



Logistics;

Definition - Logistic is the union of Planning, Operating and Controlling the Flux of Raw Material, products, services and data of your company.


Starting Capital and Monetary Flux;

Let's say that every new Company need a little push. The Initial Budget is that push. With it you will buy the Raw Materials (in case of Manufacturing and Construction) and pay salaries. Depending on where you're starting your business, it is very recommendable that your starting Capital should be high, so you can survive while you try to establish yourself in the market.
The Budget I would recommend is:

-Manufacture:
Q1=20 g
Q2=20g
Q3=30g
Q4=40g
Q5=50g

-Lan😛
Q1=15 g
Q2=15g
Q3=25g
Q4=35g
Q5=45g

-Construction: I've never had a company in construction, so I can't opine.

Monetary Flux: Is the money you spend in paying salaries, raw material, licenses etc. You should establish a max value for this, as for an example, five times the money you usually spent with all the expenses. Everything above this line will be your profit. Having a High budget in the flux means that you can stand more days against the competitors in a period of high demand.

Competitive Price VS Competition;

That's the problem of the market, mainly the one of the highly populated countries, which have a saturated economy.
Always analyze the competitors. If the competition is too high and the prices are falling too much you will have losses or, in the very best situations, a low profit.

If the competition made the continuation of the business impossible you have three options: Lowering the costs, reduce the profit margin or close the doors.


Workers;

Always look for countries that have wars. Generally speaking, these countries tend to have more people and higher wellness, what means more potential workers. This means your wages will be lower and your production will be higher.
The ideal is to always have the indicated number of workers for Max Production what will grant you a 10% higher production. These numbers are 10 to Land and Manufacture or 20 to Construction.

Demand;

Demand é the need for the product you offer. Your product will be demanded when you have the lowest prices on the market.

Before starting a business you must analyze for at least a week the market of the product you intend to produce. Study the variation of the prices, the value of the currency, The taxes, the competition and conclude if you can generate profit.

Income VS Profit;

Income is every money that you get by selling products or services, without paying salaries, Raw Materials, Taxes etc. If you sell a q1 weapon for 5 CUN (Currency Units) you'll have 5 CUN as Income.

However, after paying all the debts and costs you'll get the profit. Profit is the Income minus salaries, taxes and Raw material, for non-land companies.


GM Records V 3.0

GM RECORDS, is an executable excel archive that helps you to manage your Business by generating several data that will help a lot. These data will be listed up ahead.

Download GM RECORDS DOWNLOAD HERE! Here!





1- Quality: It's the quality level of your business. 1, 2, 3, 4 or 5. This will be the quality of the good produced..
2- Cur Price: It's the price in which you are selling your good.
3- Industry: It's the kind of business. House, Gift, Weapon, Iron...
4- Profit aim: It's the profit margin you establish.
5- Single RM Cost (manufacture or construction): It's the cost per raw unit bought.
6- Daily expenses: Self-explicative.
7- Daily Income: Self-explicative.
8- Daily Profit/Loss: Daily Income - Daily Expense.
9- Break Even - Sell Amount: The amount of products that your company has to produce not to bankrupt.
10- Daily Products Produce😛 The amount of products you produce daily.
11- Daily RM use😛 The amount of products that your company produces per day.
12- Cost Price: The cost of a single unit of your product.
13- Recommended Retail Price: The recommended cost, so you'll get the profit aim previously established.
14- Current Profit Margin: The real profit/loss that your company is having.
15- Insert the name of your employees, their skill, the average wellness in which he works and his salary.
16- Employees: Number of employees you have.

WAIT FOR THE NEXT ARTICLE: IMPORTATION EXPORTATION AND MONETARY MARKET
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By Andman
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