Tutorial : How to start a profitable business - Part 4

Day 808, 11:09 • Published in Australia United Kingdom • by Apotygma


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 presenting you how to run a successful company through different part of my (extensive) tutorial. Today, I’ll publish my second part : the financing of your company. If you didn’t read the first part, read it. You will find it here :

- PART 1 : The organization
* In english (published in UK)
* In Portuguese (published in Brazil and Portugal)
* Turkish (on his way)

- PART 2 : The financing
- In English (published in the USA)
- portuguese (Published in Portugal)

- PART 3 : The projections
- In English (published in Canada)

If you want to translate this tutorial in another language, please PM me.

Part 4 : The company

Now part 4, we are now actually going towards the purchase of your company as you know now the profits you might make, where those are the highest, how much start capital you need, how much raws you need etc…

But, before actually buying it, or setting it up, I’ll give you some does and don’ts. Like a checklist to know if you are actually not making a mistake. You would be astonished how much companies are on the market but only because the buyer made a mistake.

1 – Sart a company on your own



The first option you have when you want to start a company is to set it up from scratch. To do this, it is very easy : go to “companies for sale” and then directly “create a new company” there enter everything there is to know and you are good to go ! The company will normally appear soon in your organization.

But first, a few things you MUST NOT DO :

A – Buy the organization without first having made profit calculations like I showed you last part of my tutorial. You might lose money or earn less than you actually should

b– Buy a company before having looked on the “company for sale” page, but more on this later in this part.

c – If you buy a RAW company, LOOK AT THE REGION WHERE YOU ARE GOING TO SETTLE IT. This is a very important thing and a lot of young players ignore it. In eRepublik there are several kind of regions, mainly : No, medium and high resource regions. What is actually the difference between them? Let’s take a look at the productivity (or units of production) of an employee. I gave him 100 wellness and a skill 5 in a Q1 company. When we look at his productivity we get :

- In a “no” resource region : 0.1125 units of production per day
- In a “medium” region : 11.25 units of production per day
- In a “high” region : 22.5 units of production per day

As you can see, this is very important. A company in a no resource region will produce 200 TIMES less than in a high region !! If you settle your company in a no or a medium resource region making money will nearly be impossible. So before you buy your company, you first need to take a look at this page : http://ereptools.net/regions/search. You will be able to see easily in which regions you can best settle your company. Only look at a high region, it is there that you will earn the most money. If the country you where planning to set your company in is not on one of those pages : stop and look at another opportunity

d – If you start a company there are several “bad types” of companies. “Bad types “of companies are companies that will nearly never sell anything because they are part of government business. Let me explain myself. Hospital companies and Defense system companies are government companies most of the time, because only governments can place them in a region. Most governments produce for themselves or sell between each other. Nearly NO private investor can sell one, and bellow Q5 those companies are a waste of time and money.

A second type of bad companies are Gifts and Moving tickets above Q1. Those will nearly never sell because you can get Q1 cheaper than a Q2 or Q3 for nearly the same effect. In those industries it is more interesting to buy 3 Q1 than 1 Q3. Don’t think about starting higher there, but this makes them a very good first company because you will not have to compete with higher quality companies that may steal your customers.

The third kind I already described : raw companies in a no or medium region. Most also consider that under Q3, raw companies are not profitable. This is not true, you can make money, but other industries are more profitable for the same amount of money and time.

e – Have enough money to start right away and producing during a certain amount of days without selling. If you followed the guide, you know how much money you need.

f – Know the required amount of people your company requires. This can be important because people tend to forget that there are different number and this may change the whole thing, getting 20 employees is much harder than 10. This may impact on your earnings so be careful about that. The remind you, the optimal number of employees :

* Food - 10 employees
* Moving - 10 employees
* Gifts - 10 employees
* Weapons - 10 employees
* House - 20 employees
* Hospital - 20 employees
* Defense System - 20 employees
* Raw materials - 10 employees

Basically, the number of employees affects the productivity of your workers, how closer you are to the number written above, the more they will produce.

g – Now how to introduce raws in your company, sell gold and currencies in the market before starting.

I think that is pretty much it, I may forget some so read the comments below, some people might correct me.

2 – Find good deals



As I already told there is an option where you can buy companies from the market instead of creating a new one. Most of them are rubbish, mistakes or sold because you lose money by keeping it open. But, some of them are very good deals and you should hunt them. Those good deals can save you a lot of money, for example :
A Q2 diamond company, with 3 licences in a high diamond region : 50 gold instead of 80.

Finding those deals and learn how to hunt them is the theme of this second part.

A – If you already set up your mind.



Of course, if you already set up your mind and know that you can earn money in a certain business and a certain country, buy the company on the market. It will be exactly the same than making your own one. FOR RAWs : pay attention to the region, a mistake is quickly made.

But, we can state that buying on the market is always a better deal than starting your own. Something important to know is that it can sometimes be more interesting to buy a Q1 and then to upgrade it. Let me explain : you see that there is a Q1 company with 4 licences on the market for 25 gold, but you want to set up a Q3 because you know that you don’t make money in Q1. Imagine that there are just average companies for sale in the Q3 segment. The best you can do is buy the Q1 and then upgrade it. You will save the money from the licences, of course if you don’t plan to export 😁

B – hunting the good opportunities



First things first, what do you need :

1 – time
2 – patience
3 – money

Why? First time is very important because good deals are scares and it may take you a while before one comes on the market. If you don’t want to wait, fine but you might lose money. Second, you need also money because you are not the only one looking for good companies on the market. A lot of people do, so if you see a company in the market and you are sure that it is a good deal you have to have the money. If you don’t have the money the company may be brought in the meanwhile and you are there with nothing.

So, how do you hunt them?

It is very easy : go to the company page and look at all of them. Best is to set up your mind and know what kind of industry you want. If you know you want to go in Oil, then locate the countries with a high oil region and look at those.

While doing this, make a shortlist with interesting information about the companies you find. I personally always write : Quality, price, licenses (working or not), region (to check if it is in a high region), number of employees (a company with 10 working is more worth than a company without because you can start right away and don’t lose money waiting for them to join).

When you wrote down all the companies in all the interesting countries, look at them and compare them. If you see that one is a better deal than the other : delete the worst of them. For example :

- A Q2 oil company in China for 35 gold
- A Q2 oil company in Brazil for 39 but with 3 working licenses

In this case you can without hesitation delete the first one. Make this list as short as possible and run the calculations I explained in the 3de part of this tutorial. Then pick the one with the highest profit margin !

3 – Use the monetary market



I didn’t know where to stick this, so I’ll do it here. I’ll explain quickly how to use the monetary market. This is very simple, the only thing you will need to pay attention to is to the fact if you are using your company account or not.

So go to your “Monetary Market” (under Market) and go to “post a new offer”. By default, you will find yourself on the page with your organization on. This is not what we want, why? Because you will trade the money into you organization accounts and not your company accounts.

People cannot forget that putting money into the company is free, but getting it back out will COST you money ! You will have to pay income taxes on them so if you do :

Sell at your company => take the money out => exchange => put back in, you will lose a lot of money. So, how do you change the account :



Go to the avatar of your organization right next to the local currency and then select your companies account. This way you will only sell the money available in your companies page.

Now that you are on the right account, you can set the currency you want to sell and to what you want to exchange it on the right. You must know that currencies don’t often sell between each other, I mean : exchanging ZAR to NLG will not work. Nobody will buy it. Best you can always do is : ZAR => GOLD => NLG.

And how to set the prices?

The best Is that you look here : http://ereptools.net/currencies/local, this will tell you the cheapest on the market. Best you can do is always set on the lowest price, equally or just under. But know that if you change local currency into gold, always set THE SAME PRICE. Not under or it will cost you a lot of money. The other way round is much less important.

4 - Varia

And this one is for the noobs/lovers/random people that want to destress after such a long paper.