[MoEd] The Basics of Owning a Company

Day 5,688, 14:33 Published in United Kingdom United Kingdom by Department for Education

Companies are an important part of the eRepublik world. They are responsible for producing various goods such as food, weapons, houses, aircraft, and the raw materials used to make them. Players can buy and own companies, and they can sell their products on the marketplace where prices are determined by supply and demand (and taxes!). If you are interested in business then these guides are for you.

This is an introduction to the economics module, it has been made by compiling key pieces of information from an advanced guide written by Paul Tyndale, which will be published in full tomorrow.
When you join eRepublik you may wish to start up companies straight away. However, starting a company may not be the best choice for new players, as it requires a significant amount of money, resource management, and saving. It's possible to speed up progress by purchasing gold from the eRep store. (But do not feel like you have to!)

Before starting your business empire, there are a few important points to consider:

Timing: Take advantage of events like Black Friday, where there may be discounts on company upgrades and the creation of new raw material companies.
Travel expenses: Consider the cost of traveling to work in your own companies. Traveling long distances can be expensive, so choose your company's location wisely.
Energy management: Make sure you have enough energy to work in your companies. Having too many companies that consume a lot of energy without being able to regenerate it can be counterproductive. Consider investing in Permanent Energy Centers to increase your maximum energy pool.
Taxes: Working in your own companies comes with taxes that can make some companies unprofitable. Be mindful that the cost of producing goods may exceed their value due to taxes.
Workers: While you can hire employees for your companies, high wages in most countries make it unprofitable to use workers in certain industries such as food and weapons factories. Carefully consider the costs of raw materials and workers when deciding on which companies to invest in.
House and aircraft companies: These types of companies require employees and have additional costs associated with raw materials and workers. Take these factors into account when considering investing in such companies.

When creating a company, you will need to consider the raw materials required to produce your food, weapons, or houses. If you need food raw materials, it is always better to buy your own from the marketplace due to the tax costs, whereas for weapons you should work as a manager in your own Q3, Q4 or Q5 raw materials companies to keep things as profitable as possible (Q1 and Q2 are not). You can create raw materials companies from the "My Places" menu or purchase existing factories from other players through the "Market" option. Buying companies from the market is often cheaper than upgrading them yourself. However, note that you can only buy companies in regions where you have a holding company.

Holding companies serve as a base for your companies and need to be created in the region where you want your companies to operate. You can do this by moving to the region you would like your companies to be based and clicking on “Create new Holding” under the companies tab in “My Places”. Consider factors such as industry bonuses, pollution levels, and regional stability when choosing a location for your holding company.

Managing your companies involves working as a manager or employing workers. You can work in your own raw materials and factories as a manager. However, if you have a house or aircraft weapon company you will not be able to produce anything yourself and will require employees. Make sure to advertise for employees and set competitive salaries. Take care of your workers and ensure they are paid on time to retain their loyalty.

After producing goods, you can sell them on the market. Make sure to monitor market prices and set competitive prices for your products. Licenses can be purchased to sell products in other markets, but be aware of import taxes imposed by countries.

Managing your storage capacity is also important to avoid production bottlenecks. Additional storage can be purchased or obtained as rewards in weekly challenges.

Remember, building a successful business empire requires careful planning, resource management, and strategic decision-making.

This has served as an easy to follow quick guide for new players on what companies are, how they work and how to operate them. In order to run a successful business however, it is more in depth and is much broader than this article is able to delve into.
With this in mind we will be releasing Paul Tyndale’s advanced guide in full, which will go through all of this information again but with a lot more information for each part.
Hopefully this version will provide players with the foundational knowledge to start looking into owning companies, and the full guide will help flesh out everything needed that may have been overlooked. Once the article is published it will be linked here.

This introduction has been put together by drawing out key information from an advanced guide written by Paul Tyndale. It was compiled by Betafoxtrot, MoEd.