I often get asked by noobs whether its worth opening a company with the gold or Citizen Currency that they receive in game and whatnot. This can be a tricky question as the game changes so wildly and not usually for the better so opening a company one day might be great but the next day everything has gone to hell and you wish you had spent your gold or money in a better way.
What i will try to do here today is give some positive aspects of opening a company while trying to outline the major pitfalls.
There are several types of companies, and for the foreseeable future, you are able to work as manager in all (WAM) and you are also able to hire people to work in them as well. The only companies that aren't able to hire employees at this point in time, are the lowest grade food raw materials (FRM) and weapons raw materials (WRM) companies, these been Grain farms
and Fruit orchards and Iron mines and Oil rigs.
Other companies are able to hire a certain amount of people depending on their level. Quality 1-4 weapons and food companies can hire from 1-5 employees.
Q1, 1 employee.
Q2, 2 employees,
Q3, 3 employees
and Q4, 5 employees.
After Q5 company managers can hire 10 employees.
Raw Materials companies can hire less
The first things to look at when thinking about buying a company, is how much u can afford, what is the yield to cost of the company, can you employ people if you wish to, how much raw material does it require (food and weapons companies) and of course DOES IT MAKE PROFIT??. Its not good making a company for profit, if it actually loses money each time you work it.
The trend lately is to open raw materials companies as all it does is make raws which are able to be sold for a profit on the market. Each company you work in takes 10 health, so if you had to buy food to work in any type of this company, does the profit recouped cover and exceed the cost of the food needed to make it?
Food costs vary on the market. For example, 1 Q1 bread which gives a total of 2 health will cost 3 cents. You will need 5 of these to cover the health needed to work in one company, bringing to total cost to 15 cents. When looking at what company to purchase, you will need a company that covers and even exceeds the 15 cent health costs that is required. Even the lowest yielding RM companies will make a profit if you had to purchase food to cover the costs of making it. These figues of yeilds are also at a base level of production. Production will rise as more production bonuses are gained in the country.
The lowest yield of a raw material company is 35 units of RMs. A grain farm or an Iron mine. These will both cost you 1500 Citizen currency which works out at around 5 gold on today's market. As you can see a Fruit orchard and Oil rig cost around 10 gold in Citizen Currency yielding 70 units of RM. A fishery and aluminium mine ALSO cost 10 gold and yield 125 RMs. The choice is quite easy to make in a circumstance in that. If you have the currency for 10 gold, you are better of using the currency to exchange for gold and buy a higher yielding factory.
Basically, IF you feel the need to open a company to make a small profit at first to get yourself by, open a raw materials company that will bring in a small but regular income. The more you study the market and the costs of
the company, the better position you will be in to decide which company is right for you.
Food and weapons companies work on basically the same principal. Although you can only buy a Q1 factory to start with, they are able to be upgraded whenever you have the money to do so. The best thing to do is to be able to make all your RMs for a comapny BEFORE you open one. This way you are not having to buy RMs for it and can cover the costs of it yourself with your own materials. My advice as always is to WAIT FOR ADMIN SPECIALS. They have them quite regularly and you wont have to wait long before one of these pops up and you can upgrade your company for at least 30% off the ticket price. I will write more on food and weapons companies as it is a more involved subject, in another article in the coming few days.