Tutorial : How to start a profitable business - Part 1

Day 802, 03:48 Published in United Kingdom United Kingdom by Apotygma

EDIT : Part 2 is online !

PART 1 : The organization

Nowadays, everyone in eRepublik wants to start a company. Starting a company is the first step towards the wealth. It is also part of one of the main elements in eRepublik : economy. A lot of people seem to forget that eRepublik isn’t only about war, especially with the WW4 taking place right now, but also about economy. Every single product on the market is produced by a company owned by a player or by the state, even this last one can be considered as a player.

During the next couple of days, I’ll be explaining you, step by step, how to ensure that you can start up a profitable company. The last part is the most important : “Profitable”. Most people tend to forget that having a profitable company is hard work and they simply invest their first savings in a company hoping that the money will literally fall out of the sky.

Let me tell you : THIS IS NOT THE CASE. Don’t expect to see pictures like the following in eRepublik :

To come back to our case, I can even assure you that it is not true. Most starting companies are losing money, but how can YOU ensure that yours isn’t? Very simple. A few basic steps can be followed, and should be if you want to be successful. I’ll try to keep it as simple as possible, leaving everyone the opportunity to understand it. If you don’t understand something, please feel free to leave a comment, if you don’t agree with something, do also. I will try to follow up the comments as often as possible, or I’m sure, others will be glad to help you out.

1 - Create an organization

A - Why

This is the first element and 5 gold well spent before you can create you company. Why is it so important to have an organization? First of all, you can create a company without having an organization, this is perfectly possible, but there are several disadvantages doing so.

The first one is that you will not be able to work in any other company (even your own) as you will be the manager. This will be your full time job. Being able to work can be very useful, you can either work for your own company and be a cheap worker, or work in another company in order to finance your own if you need money. This second source of income will also allow you to create a second company quicker than if you only managed it.

Secondly, you will lose 1 wellness everyday for each company you manage. Not such a big deal, but still.

You now know why you shouldn’t work without an organization, but working with an organization has other advantages. Organizations can travel around the world like citizens do with moving tickets. Having an organization means you don’t need to travel around yourself, lose wellness, not be able to work, not be able to vote, not be able to be in congress, etc…

B – Where

This is the second important element, where are you going to settle your organization. This is a very strategic decision. Why? Because if you settle your organization in a country that produces the raws you need, you’ll be able to get cheaper raws than buying it on your local market (except if your country produces the raws, but even then you cannot be sure).

How can you determine where to settle you organization? The best is to use a tool and look where the prices of raws per Quality (we will explain this later) is the lowest on the market. I give you the advice to use ErepTools.net, but there are a lot on the internet, you just need to look at it. You can find directly the page for “raws per quality” here : http://ereptools.net/market/raw.

Let’s take an example, we are today 01-24-2010 day 796 in eRepublik. You want to start a Gun company, so you will need to take a look at Iron, the raw you will need. Look at your page where the lowest offers are. One thing you need to realize is that if there is only 1 offer from a special country, but it is the lowest on the market, then it is NOT a good idea to rush your organization there. Why? Because it means there is a price war and that prices may rise again very fast. Best is you settle your org in the country where the most offers are (Hungary in this case, it has nearly all the cheapest, only 4 are cheaper)

In big here : http://img25.yfrog.com/img25/215/rawcost.jpg

Now that you have settled your organization, you will be able to buy raws from there. You’ll need to have some local currencies, but we will explain later how to get those.

C- How

Very easy, now that you know where you are going to settle your organization you go to “my places” => Organizations => “Create New”. You can now fill in everything and you’ll have your own organization, this if you are lvl 11 or more.

For your information (for new players), organizations are like a second player. To get acces, you will need to log off, and login with the organizations password and login. Please do not take the same password, this way if you get hacked they will not be able to get in your organization.

Secondly, where it is forbidden to share a citizen account, you can share an organization with some else. This can be a very useful way to set up your company with a friend and get a higher start capital. The best if you do this, is to create a contract. This way you will be assured against robbery from your partner by the admins. To make a contract, follow this guidelines, best is to ask a more experience player if you don’t have a clue how to make them. It is very important that you follow exactly those rules, otherwise the contract is void and you are not protected.

2 : How much money do you have?

For all new players, money will be the hardest part in the game. Starting up a company is not cheap. You will need to take into account several parameters :

A . The cost of the company itself and the quality.

First things first, buying the company. Starting up a company is not for free, each company has a certain price that is linked to its quality. What is exactly the quality of a company? As you may have seen in the market, you can buy several qualities of goods like : quality 1, 2, 3 , 4 and 5 bread. Each quality level is represented by a star, but why is this important?

To give an example : a quality 1 company, will produce a quality 1 product, a Q2 a Q2 product, etc… You can now see that different quality levels will produce higher qualities of products, and of course, how higher the quality, how higher your profit margins.

But how much do they cost? Very simple, to start a company from scratch you will need 20 gold. If you do this you will have a Q1 company, if you wish to upgrade it, each time the price will rise as follows :

This implies that a cost to start up each company is as follows :
Q1 : 20 GOLD
Q2 : 40 GOLD
Q3 : 90 GOLD
Q4 : 190 GOLD
Q5 : 390 GOLD

You see, very expensive, we will focus on Q1 and Q2 as this will be the companies that most of you will buy if you read this guide. So first thing to do is to look at how much gold you have to buy the company on its own. There are cheaper ways to get a company, but looking at this is the best way to know if you are ready.

B – The startup capital

Let’s imagine that you just brought your company (don’t do it yet ! We are not finished 😁). You should now start wondering if you have enough money to start up your company, normally you will have some spare money.

With this startup capital you will need to do two things, first pay the first days of wages before you can actually sell something, and secondly the raws you may need. This doesn’t apply for a raw company, but this will come later.

First the wages, the best is to have at least 2 or 3 days of wages in your company at all time. Why is this so important? If your company runs out of money, your workers will not be paid and they will leave the company as fast as you hired them. You can easily check how much money you have in your company, it is written here :

How can you calculate the amount you will need? The best is to take a look at the wages you will set for your job offers. Then, take the highest quality you can pay and multiply it by the number of people you will hire.

For example, you have started a weapon company in the United Kingdom. The wages today for a manufacturing worker are :
Skill 0 : 1 GBP
Skill 1 : 1.35 GBP
Skill 2 : 1.90 GBP
Skill 3 : 3.91 GBP
Skill 4 : 5.80 GBP
Skill 5 : 8 GBP
Skill 6 : 9.16 GBP
Skill 7 : 15 GBP

As a starting company, the best you can do is not focus in the highest skilled workers, they are very expensive and will ,most of the time, work in higher quality companies. As Q1 or Q2 the best you can target are Skill 4 or 5. So let’s take skill 5 for the example, you hire 10 people at skill 5, this means you will need 80 GBP per day, this is at current rate 2.4 gold a day. Of course this is quite high, but it will give you some air the first days. So to be good you’ll need 5 gold of wages in your company.

Secondly, the raws. If you plan to start up a raw company you can skip to the following to the conclusion of this part.

Now that you have enough capital to pay your wages, you will now need to provide them with raws. Having now raws will prevent your workers from working and, by this, prevent them from earning their wage. First let’s take a look at the workers page

Only this tiny bar is interesting for us for the moment. The numbers you can see here are production units, or also called productivity. You will need a certain amount of those production points to create one product. You can easily calculate what your productivity, or the productivity of your workers will be with one of the tools available online. You can find some here

But what has this to do with how much raw you need? Everything ! To give an example of how much raws you will need depending on the company you manage :
* for 1 production unit of a Q1 product - 1 unit of raw material
* for 1 production unit of a Q2 product - 2 units of raw material
* for 1 production unit of a Q3 product - 3 units of raw material
* for 1 production unit of a Q4 product - 4 units of raw material
* for 1 production unit of a Q5 product - 5 units of raw material

So if you own a Q2 company and you use the bar above, if one of your workers has a productivity of 20, you will need 40 iron a day for this worker alone. So, before you start, calculate how much raws you will need at least. The best you can do is buy as much as you can (like 400-500 units at once). They will all be stocked in your company and there are no limits of capacity on this.

So now you know how much raws you need, but what quality? We saw that you could buy several qualities of raws. The important thing to know is that each quality of raw will provide for more or less units of production. I’ll explain with an example after woods :

* Q1 raw material = provides 1 unit of raw material
* Q2 raw material = provides 2 units of raw material
* Q3 raw material = provides 3 units of raw material
* Q4 raw material = provides 4 units of raw material
* Q5 raw material = provides 5 units of raw material

So, let’s take our example back. Your worker has 40 units of production, this means he will need 40 units of raw iron. How can you provide this? You can either :
- Buy 40 units of Q1 iron
- Buy 20 units for Q2 iron
- Buy 14 units of Q3 iron
- Buy 10 units of Q4 iron
- Buy 8 units of Q5 iron
Why is it interesting to buy a higher quality of raw, except the simple fact of being easier? Most of the time, how higher the quality is, how less it will cost per unit of production (or per quality. This means that we compare everything to a Q1 raw, like 1 Q5 is 5 Q1 units of raw). You can easily look where you can find the cheapest price per unit of production here : http://ereptools.net/market/raw/ or if you want the price per quality level of raw here : http://ereptools.net/market.

3 – Conclusion

So you know saw more or less how much money you would need to set up a company, or at least how to calculate it. It may seem you unnecessary to do this, but I can assure you, this can spare you some trouble. During the first days you will always lose money, time you find some good employees, losing them will force you to start all up (with all the costs that it implies).

To give you a very simple idea of how much you need, this is a good start. It is only done for Q1’s, hospitals and defense systems shouldn’t be considerate as they will never sell (only states can buy them and no private investors can sell to states, or nearly).
- Food or weapons: 30, 55, 120, 220, 420G (for qualities 1 to 5)
- Gifts: 30G (Q1)
- Moving ticket: 35-40G (Q1)
- House: 40, 70, 130, 250, 450G
- Raw material: 110, 210, 410G (Q3+ only)

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